The Bank of Ghana (BoG) has sharply revised its end-of-year inflation target for 2025 to 12%, down from an earlier projection of 16%.

The move comes amid a gradual easing of inflation and renewed efforts by the central bank to stabilise the economy through tighter monetary policy.

Speaking in an interview with JoyBusiness on the sidelines of the IMF/World Bank Spring Meetings, BoG Governor Dr Johnson Asiama said the revised target reflects confidence in the impact of recent policy actions and broader macroeconomic reforms.

“Look at what is happening to the cedi, as well as the policy action taken at the last Monetary Policy Committee (MPC) meeting, that should help tackle food inflation and deliver lower inflation going forward,” Dr Asiama explained.

At its last meeting in March, the MPC raised the policy rate by 100 basis points to 28% in a bid to curb inflationary pressures.

Dr Asiama confirmed that the next MPC meeting is scheduled for May 22, 2025, and stressed the Bank’s readiness to act stating, “I can assure you that the Bank of Ghana will take the required actions based on our data.”

The downward revision to 12% brings the BoG’s inflation target closer to the government’s own goal of 11.9% for 2025, as outlined in the 2025 Budget by Minister of Finance, Dr Cassiel Ato Forson.

That budget had initially forecast a more optimistic inflation outlook, which many analysts and economists, including Professor Peter Quartey, have described as overly ambitious given ongoing economic pressures.

Meanwhile, the International Monetary Fund (IMF), in its latest Africa Regional Economic Outlook, projects Ghana’s inflation will end the year at a more conservative 17.5%.

However, the IMF also expects inflation to fall to 9.4% by the end of 2026, potentially paving the way for the country to return to single-digit inflation for the first time in years.

Inflation in Ghana has already begun to ease, falling for the third consecutive month in March 2025 to 22.4%, down from 23.1% in February.

This downward trend has bolstered hopes that tighter policy, alongside fiscal consolidation, may help bring inflation closer to target by year-end.

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