2025 Budget to Address Rising Food Costs - BoG Governor
Accra, Ghana - 04 March, 2025 - Ghana's central bank has announced plans to introduce measures to address rising food prices, a major driver of inflation, in the upcoming 2025 budget.
Governor of the Bank of Ghana, Dr. Johnson Asiama, revealed in an interview with Bloomberg that the bank views targeted fiscal interventions as crucial for stabilizing prices and ensuring macroeconomic stability.
According to Dr. Asiama, these price pressures are deeply ingrained and require a strategic policy response to mitigate their impact on food inflation.
“Last reading came in a little higher but we think that going forward if you look at the causes of the inflationary pressures, it was mainly from food inflation. It was mainly structural in nature and so therefore the coming budget statement which is about to be presented should be presenting a number of measures that can contain food inflation. If that is done, I am sure we will see a return to the disinflation path,” he stated.
The Bank of Ghana's Monetary Policy Committee (MPC) is scheduled to convene next month to reassess the country's economic landscape and determine the most effective course of action. Dr. Asiama is optimistic that by adopting the right monetary policy stance and controlling food price inflation, Ghana can steer inflation back towards its target trajectory.
“We plan to hold the next monetary policy meeting next month where we will reassess the conditions and take an appropriate decision. Therefore once we have an appropriate monetary policy stance in place and then also food price inflation is well controlled, we will begin to see inflation trending back to its target path,” he added.
Source: Lead News Online
