Taming inflation in Ghana didn’t come cheap, but the central bank just confirmed the tough part is finally over. Dr Johnson Pandit Asiama told business leaders at the Kwahu Business Forum that last year’s price drop came at a steep financial cost to the institution. He’s convinced the heavy lifting is finished now.
Here is how they pulled it off. The bank spent heavily to pull extra cash out of the financial system, which directly cooled down soaring prices. That strategy successfully pushed inflation from 23.8 percent down to just 3.2 percent today, and Dr Asiama noted that “the cedi is stable and under control.”
He admitted that “Last year was good but expensive for the central bank. It took us a lot of money to mop up excess liquidity and bring inflation down.” But he explained that keeping prices steady won’t drain the treasury anymore. As he put it, “If you look at where inflation was at the end of December 2024 and where it is now, it wouldn’t involve the same level of resources to keep it low and stable going forward.”
Central banking always means juggling competing goals, and Dr Asiama reminded the room that “The work we do is always about trade-offs… trying to strike the right balance.” Now that prices are back in check, the focus shifts to helping private companies borrow and grow. Ghana’s economy can finally breathe without another expensive rescue.
