Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has reaffirmed the central bank's commitment to reducing inflation to single-digit levels, noting that the current inflation outlook is broadly positive.

Speaking at a joint press conference for the 2023-2026 Extended Credit Facility (ECF) Third Review Mission in Accra on October 4, 2024, Dr. Addison highlighted recent trends in inflation.

By the end of the first quarter of 2024, inflation stood at 25.8%, which decreased to 22.8% in the second quarter and further eased to 20.4% by the end of August.

However, the latest figures for the third quarter showed a slight increase to 21.5%, driven by a sharp rise in food prices.

Dr. Addison assured that the BoG will continue to monitor these developments and maintain the necessary monetary policy stance to keep inflation within target over the medium term.

"It is not unusual to see intermittent upticks in inflation. The key is in the trends. The Bank of Ghana will ensure that we stay the course of sound underlying macroeconomic policies.

“In this regard, BoG and MoF will implement an appropriate monetary-fiscal policy mix to deliver sustainable growth in a stable environment," Dr. Addison stated.

The International Monetary Fund (IMF) has noted that Ghana's economic growth in the first half of 2024 exceeded expectations.

Stéphane Roudet, IMF Mission Chief for Ghana, reported that the country's performance under the IMF-supported program has been generally satisfactory, with all end-June 2024 quantitative targets met and progress on key structural reforms continuing despite some delays.

An IMF staff team, led by Roudet, held meetings in Accra from September 24 to October 4, 2024, to discuss progress on reforms and policy priorities as part of the third review of Ghana's three-year program under the Extended Credit Facility.

The arrangement, approved by the IMF Executive Board on May 17, 2023, provides a total of SDR 2.242 billion (US$3 billion).

ID/AE