Introduction to Monetary Policy Shift
The Governor of the Bank of Ghana, Dr. Johnson P. Asiama, has announced a significant shift in the focus of monetary policy towards managing expectations. This change in approach comes after a period of "restoration" in 2025, during which the central bank worked to contain inflation, restore order in markets, and rebuild trust after years of volatility.
Managing Expectations
With headline inflation now close to target, the bank’s priority is to ensure that households, businesses, and investors believe stability will be maintained. Dr. Asiama emphasized that the Bank of Ghana will focus on locking in credibility and preventing a relapse into instability. This marks a transition for the bank, which had previously focused on containing inflation and restoring order in markets.
Domestic Gold Purchase Programme
The Governor also discussed the Domestic Gold Purchase Programme, stating that these programs involved costs but delivered tangible stability benefits. He described them as strategic interventions in support of macroeconomic and external resilience.
Monetary Policy in 2026
Dr. Asiama noted that monetary policy in 2026 will remain measured and predictable, with clear signaling designed to reinforce credibility rather than surprise markets. He emphasized that the bank responds to evidence, risks, and the medium-term outlook for price and financial stability, rather than pressure, speculation, or sentiment.
Consolidation and Discipline
The Governor stated that 2026 would be about consolidation and discipline rather than expansion. Supervisory focus will deepen on governance, capital planning, and early risk detection, while financial market reforms will be embedded into routine practice.
Quality over Quantity
The emphasis for the year is on quality over quantity, with a focus on strong institutions, disciplined markets, and policies that endure. Oversight will be strengthened to ensure consumer protection, sound governance, and system reliability, while innovation proceeds within clear regulatory boundaries.
Reflection on 2025
The year 2025 was described as a difficult year that required tough judgments, careful sequencing of policy actions, and sustained discipline across institutions. The passage of the Bank of Ghana (Amendment) Act in 2025 strengthened the bank’s independence and accountability, placing the country’s central banking framework on a firmer footing in line with international best practice.
Conclusion
In conclusion, the Bank of Ghana’s shift in focus towards managing expectations marks a significant change in approach. With a focus on credibility, discipline, and quality, the bank aims to maintain stability and ensure that households, businesses, and investors have confidence in the economy. As the bank moves forward, it is likely that we will see a continued emphasis on strong institutions, disciplined markets, and policies that endure.
