Some of our challenges stem from earlier monetary, fiscal policy missteps – BoG Governor

The Governor of the Bank of Ghana, Dr. Johnson Asiama, has attributed some of the country’s current economic challenges to past monetary and fiscal policy missteps.

Speaking at the opening of the 123rd Monetary Policy Committee (MPC) meeting on Monday, March 24, Dr. Asiama acknowledged that previous lapses in economic management had contributed to elevated inflation, weak policy transmission, and a loss of credibility in the financial system.

“We must also acknowledge that some of today’s challenges stem from earlier monetary and fiscal policy missteps—particularly loose fiscal policy during periods of macro stress, weak monetary-fiscal coordination, and delays in key structural reforms,” he stated.

The central bank head observed that Ghana has been battling with high inflation, which, despite some easing, remains above 23 percent.

Dr. Asiama noted that while the economy is showing signs of recovery, lingering structural weaknesses must be addressed to ensure lasting stability.

“These contributed to elevated inflation, impaired policy transmission, and a loss of credibility,” he stressed, adding that the focus now should be on institutional strengthening rather than assigning blame.

He further highlighted the need to learn from past mistakes to prevent a recurrence of economic instability.

“It is essential that we reflect on these issues—not to assign blame, but to strengthen our institutions and avoid repeating past mistakes,” he emphasized.