BoG anticipates further easing of inflation in 2024

The Bank of Ghana anticipates a further easing of inflation in 2024, supported by the continued implementation of sound policies until inflation expectations are firmly anchored towards the single-digit objective.

A notable improvement has been observed over the past year, with inflation dropping from around 54 percent to 23 percent by the end of 2023.

In a brief statement following the completion of the First Review of the Extended Credit Facility (ECF) Programme with the International Monetary Fund (IMF) on January 19, 2024, Governor Dr. Ernest Addison emphasised the central bank's commitment to monitoring domestic and external developments.

The goal is to respond appropriately, ensuring that the recent downward trajectory in inflation is sustained without compromising economic growth.

Dr. Addison highlighted the positive experience of 2023, characterised by a substantial reduction in inflation and stronger economic growth.

Turning attention to the banking sector, he reassured that it remains sound, liquid, and profitable. He said the Bank of Ghana will closely monitor banks' efforts for capital restoration, particularly in light of the impact of the Domestic Debt Exchange Programme (DDEP).

Dr. Addison expects early recapitalisation to enhance banking sector resilience and facilitate effective financial intermediation, contributing to macroeconomic recovery.

Discussing the completion of the First Review of the ECF Programme, Dr. Addison stressed the need for continued vigilance and commitment in 2024 to implement the envisaged structural reforms.

Despite acknowledging the challenges ahead, he expressed confidence in the ongoing economic recovery process.

He stressed the importance of executing necessary structural reforms to support a more efficient functioning of the economy, ensuring long-term sustainability.

Looking ahead, he urged the country to prepare for the second review of the program and emphasised the critical role of structural reforms in achieving a well-functioning and sustainable economy.