BoG Governor calls for transparency in Monetary Policy Committee decisions

The Governor of the Bank of Ghana, Dr. Johnson Asiama, has emphasized the need for greater transparency in the decision-making process of the Monetary Policy Committee (MPC).

Speaking at the 123rd MPC meeting on Monday, March 24, Dr. Asiama proposed that minutes of the committee’s meetings, along with individual voting records on key policy decisions, be made public.

“That is why I am proposing that the minutes of this meeting should be published, as well as how every member voted when it comes to the policy rate,” he stressed.

Dr. Asiama, who was recently appointed as Governor, made these remarks in his opening address, where he outlined his vision for strengthening monetary policy transparency and communication. He acknowledged concerns that MPC decisions often appear opaque, with limited public insight into the data-driven reasoning behind policy choices.

“To counter this, I am proposing that we implement mechanisms to make the Committee’s decision factors more accessible—whether through publishing voting outcomes or enhancing the narrative content of our policy statements. Similarly, we need to work on simplifying the way we present forecasts so the public and market participants can better understand the underlying policy story,” he stated.

The meeting, which focused on the macroeconomic landscape, also addressed key challenges such as stubborn inflation, rising liquidity levels, and concerns over private sector credit growth. Dr. Asiama highlighted that while inflation is showing signs of easing, it remains uncomfortably high at over 23 percent, with structural drivers like food inflation persisting.

On the external front, he noted that Ghana has benefitted from strong trade surpluses and increasing reserves, supported by gold exports and remittance flows. However, he warned of potential risks posed by global tariff wars, geopolitical tensions, and weakening Chinese demand, which could disrupt market stability.

Domestically, the Governor pointed out that while early 2025 has shown signs of fiscal consolidation, questions remain over whether the current measures will be sufficient to anchor expectations and satisfy upcoming International Monetary Fund (IMF) program reviews.

Dr. Asiama also acknowledged the long-standing challenges within the banking sector, including cautious lending behaviors by commercial banks, non-performing loans, and the need for continued regulatory reforms in the microfinance and rural banking sectors.

Reflecting on past policy missteps, he noted that loose fiscal policies, weak monetary-fiscal coordination, and delayed structural reforms had contributed to inflationary pressures and policy credibility challenges.

“Our task over the next few days is to weigh these developments rigorously and to reach a policy stance that reinforces the disinflation path without undermining the recovery or destabilizing market expectations,” he concluded.

The 123rd MPC meeting is expected to result in key decisions regarding Ghana’s monetary policy stance, with a focus on stabilizing inflation while fostering economic growth.

Opening Remarks By Dr. Johnson Asiama, Governor, Bank of Ghana