Advertisement
A
report,
produced
by
the
Office
of
the
Chief
Economist
for
the
Africa
Region
of
the
World
Bank
dated
June
2024
has
affirmed
policy
effectiveness
of
the
Bank
of
Ghana
in
controlling
inflation.
The
Country
Policy
and
Institutional
Assessment
(CPIA)
Africa
report,
which
focused
on
reforms
across
policy
areas
in
Sub-
Saharan
Africa
noted
that
“Ghana’s
authorities
committed
to
policy
reforms
to
strengthen
the
central
bank’s
independence”.
And
that
“This
contributed
to
pursuing
tight
monetary
policy,
raising
reserve
ratios,
and
implementing
a
fiscal
reform
program
that
helped
to
reduce
year-
over-year
inflation
from
54
percent
in
December
2022
to
23
percent
in
December
2023”.
The
report
was
launched
in
Accra,
Ghana,
on
July
16,
2024.
Overall,
the
report
highlights
key
trends
and
best
practices
to
guide
policy
makers
and
international
investors
on
the
policy
developments
in
the
region,
following
the
World
Bank’s
annual
CPIA
of
countries
eligible
for
International
Development
Association
(IDA)
assistance.
The
observation
made
in
the
report
reflects
the
long-held
view
of
analysts
and
economists
that
the
central
bank’s
monetary
policy
tightening
stance
has
largely
contributed
to
more
than
30
percentage
points
drop
in
inflation
from
December
2022
to
date.
On
July
16,
2024,
during
the
Ministry
of
Finance-organised
SME
Growth
and
Opportunity
Summit
held
in
Accra,
the
Governor
of
the
Bank
of
Ghana,
Dr.
Ernest
Addison
noted
that
“the
Bank
of
Ghana
has
stepped
up
efforts
to
bring
inflation
under
control,
eliminate
monetary
financing
of
budget,
and
rebuild
foreign
currency
buffers”.
“Just
last
week,
the
country
successfully
went
through
completion
of
the
Second
Review
of
the
IMF
programme
by
the
IMF
Board.
The
Board
reaffirmed
the
generally
strong
program
performance
and
clear
signs
of
emerging
economic
stabilisation.
However,
noting
substantial
downside
external
and
domestic
risks,
they
underscored
the
importance
of
steadfast
reform
implementation
to
entrench
macroeconomic
stability
and
debt
sustainability
while
fostering
sustained
growth
and
poverty
reduction.
Sustaining
macroeconomic
stability
requires
the
Bank
of
Ghana
to
continue
to
ensure
that
the
BOG
keeps
an
eye
on
inflation”,
the
Governor
noted.