The Chairperson of Parliament’s Public Accounts Committee (PAC), Abena Osei Asare, has called on the Bank of Ghana (BoG) to consider further easing its monetary policy stance, arguing that the current gap between the policy rate and the inflation rate is placing unnecessary pressure on businesses, households, and the private sector.
Speaking during the Committee’s engagement with the Governor of the Bank of Ghana, she expressed concern that while inflation has declined sharply and fallen below the central bank’s target, borrowing costs remain relatively high.
“Now that inflation has fallen even below your target, maybe you need to ease monetary policy operations in that area so that things can balance a bit,” she said. “We need to support our households and businesses, especially when it comes to the cost of borrowing, because you have achieved what you set out to do.”
Ghana’s annual inflation rate declined to 5.4 per cent in December 2025, from 6.3 per cent in November, marking the 12th consecutive month of disinflation and the lowest level since July 2022. The sustained decline has been driven largely by a strengthening cedi and improved macroeconomic stability.
With inflation now below the Bank of Ghana’s medium-term target band of 8.2 per cent ±2, the PAC Chair argued that there is fiscal and monetary space for the central bank to gradually relax its stance without undermining price stability.
She further assured the central bank of Parliament’s support, emphasising the broader economic implications of BoG policy decisions.
“As a committee, we are always eager to support the central bank because whatever you do affects the entire economy,” she noted. “We are representatives of the people, and if supporting you to ease the burden on households and businesses will help, we are happy to do so. I will be very grateful if you can ease operations a bit, now that you have hit your target.”
Policy Rate–Inflation Gap in Focus
Analysts have pointed out that a prolonged divergence between the policy rate and headline inflation can constrain credit growth and slow private-sector recovery, particularly for small and medium-sized enterprises. While the Bank of Ghana has maintained a cautious stance to anchor expectations and protect recent gains, pressure is mounting for a calibrated easing to translate macroeconomic stability into real economic relief.
Governor Assures Stability, Calls for National Cooperation
In response, the Governor of the Bank of Ghana acknowledged that the macroeconomic stability currently being experienced is not temporary.
“The stability we are witnessing is here to stay,” he said, adding that sustaining the gains will require discipline, consistency, and collective responsibility.
He also called for a broad, unified national effort to reform Ghana’s gold trading and export framework, stressing that collaboration—rather than blame-shifting—is essential to safeguarding the country’s natural resources and maintaining economic stability.
The Governor maintained that while the central bank remains cautious, it is committed to policies that support growth, protect price stability, and reinforce confidence in Ghana’s economic recovery.
