By Ashiadey Dotse
The Bank of Ghana (BoG) has revised its end-of-year inflation target for 2025 to 12%, down from the earlier projection of 16%.
Governor Dr. Johnson Asiama announced the new target during an interview at the IMF/World Bank Spring Meetings in Washington, D.C. He said the revised goal reflects stronger policy actions by the central bank and support from the government’s fiscal plans.
Dr. Asiama highlighted recent gains in the value of the Ghanaian cedi and outcomes from the last Monetary Policy Committee (MPC) meeting as signs of improvement in efforts to control inflation. “These steps will help reduce food prices and lower overall inflation,” he said.
The next MPC meeting is scheduled for 22 May 2025, where further decisions could be made to support the new inflation target.
Ghana’s inflation rate has already been falling in recent months. In March 2025, it dropped to 22.4%, down from 23.1% in February. This trend has raised hopes that price pressures will continue to ease.
At its last meeting, the MPC raised the policy rate by 100 basis points to 28% to contain inflation. Some analysts believe another rate hike could be on the table in May to help achieve the 12% target.
The International Monetary Fund (IMF) has backed Ghana’s approach to tightening monetary policy. In a recent report, the IMF said the combination of tight monetary policy and restrained public spending could further reduce inflation.
However, the IMF projects Ghana’s inflation to end 2025 at 17.5%—well above the government’s 11.9% target stated in the 2025 Budget by Finance Minister Dr. Ato Forson.
The IMF forecasts that Ghana may achieve single-digit inflation by the end of 2026, projecting a rate of 9.4%.
