The Bank of Ghana has expressed its commitment to maintain a sufficiently tight monetary policy stance until inflation is on a firmly declining path.

In a statement to the International Monetary Fund, the Central Bank said it monetary policy aims to bring inflation back to the Bank of Ghana’s medium term objective of 8 ±2 percent.

“Our policy decisions will continue to be data-dependent to ensure a fast-paced and orderly disinflation path towards the inflation target; the BoG stands ready to adjust the policy stance to ensure inflation evolves as envisaged under our monetary policy consultation clause (TMU Section II)”.

“We are committed to continue absorbing excess liquidity and making sure our policy rate is fully transmitted to the market. In doing so, we will review the increased reliance on reserve requirements and the new tiering framework to ensure they deliver on their objectives”, it further explained.

The Central Bank said it is seeking to enhance its inflation targeting framework through improvements in its Forecast and Policy Analysis System (FPAS), macroeconomic data collection including BoG inflation expectations survey, analytical capacity, and central-bank monetary policy communication.

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