‘Our expectation for end-year inflation of 15+/- 2% remains unchanged’ — BoG

The Bank of Ghana (BoG) has said it is maintaining its target for end-of-year inflation of 15 percent plus or minus 2 percent, despite a slower pace of disinflation being seen in the first quarter of 2024.

In a joint press conference with the International Monetary Fund (IMF) on Saturday, April 13, following the second review of Ghana's extended credit program, BoG Governor Dr. Ernest Addison said inflation had dropped significantly from a peak of 54 percent at the end of 2022 to 23 percent in 2024.

However, he noted that "During the first quarter of this year, this progress has continued although we have witnessed some slowdown in the pace of disinflation primarily due to a variety of factors including adverse base drift effects."

Nonetheless, Dr. Addison remained confident that "the expectation is for the disinflation process to resume in the second quarter of 2024 and beyond driven by continued maintenance of a tight monetary policy stance. Our expectation for end year inflation of 15+/- 2% remains unchanged."

The central bank chief's comments come as Ghana looks to make continued progress under the IMF program, targeting macroeconomic stability and an early return to international capital markets.

Dr. Addison stressed the need for "continued macroeconomic stability and an early return to the capital markets, and we will remain committed to ensure that the programme implementation stays firm."