The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has cautioned that escalating tensions in the Middle East could undermine Ghana’s recent progress in stabilising inflation. His remarks come at a time when the country has recorded significant improvements in key macroeconomic indicators.
Speaking at the opening of the 129th Monetary Policy Committee (MPC) meeting, Dr. Asiama explained that developments in the global environment since the committee’s last sitting could influence the direction of Ghana’s monetary policy in the coming months. He noted that the ongoing conflict in the Middle East is already disrupting major global energy and shipping corridors, creating volatility in international oil markets.
According to the BoG Governor, such disruptions could increase the cost of crude oil and other imports, which may eventually feed into domestic inflation. He emphasised that sustained increases in global oil prices could expose Ghana to imported inflation and potentially tighten global financial conditions.
Despite these concerns, Dr. Asiama pointed out that geopolitical tensions may also present some advantages for Ghana’s economy. He explained that periods of global uncertainty often lead to higher gold prices, which could improve Ghana’s export earnings and strengthen its trade balance.
The Governor revealed that Ghana’s inflation rate has recently dropped to 3.3 percent, placing it below the Bank of Ghana’s target band and presenting a new policy challenge for the central bank.
He added that the Monetary Policy Committee will carefully assess these global developments alongside domestic economic conditions before determining the appropriate policy direction. While Ghana’s economic outlook has improved, Dr. Asiama stressed that policymakers must remain vigilant in managing emerging global risks.
Source: MyJoyOnline
