The Bank of Ghana’s real sector indicators point to a sustained improvement in economic activity, amid “significantly improved business and consumer sentiments,” Governor Johnson Asiama has observed.

Briefing journalists on Friday, 28 March 2025 following the 123rd regular meeting of the Monetary Policy Committee (MPC) held in the week to assess recent economic developments and risks to the inflation outlook, Dr Asiama said the updated Composite Index of Economic Activity (CIEA) rose by 5.7 per cent year-on-year in January 2025, relative to 3.5 per cent in the same period of 2024, driven by “increased consumption, international trade activities, and private sector credit growth.”

The confidence surveys conducted in February 2025, he noted, “also showed significant improvement in both consumer and business sentiments, buoyed by expectations for an improved macroeconomic environment.” 

The MPC raised the policy rate by 100 basis points to 28.0 per cent to re-anchor the disinflation process.

The Committee said that as inflation becomes firmly anchored, it will reassess the scope for a gradual easing in the policy stance.

In addition to the adjustment in the policy rate, the central bank is also implementing complementary measures to strengthen liquidity management and enhance monetary policy transmission.

In this regard, the BoG will introduce a 273-day instrument to augment the existing sterilisation toolkit, intensify the monitoring of banks’ Net Open Positions (NOPs) to ensure compliance and review the current structure of the Cash Reserve Ratio (CRR) to assess its broader impact on liquidity conditions and financial intermediation in the economy.