Bank of Ghana Confident Inflation Will Drop Further by Year-End as Cedi Strengthens

The Bank of Ghana (BoG) is expressing optimism that inflation will continue to fall before the end of 2025, building on months of steady disinflation driven by a stronger cedi and consistent policy management. The central bank’s positive outlook follows one of Ghana’s most significant economic recoveries in recent years.

Speaking at the launch of the Cedi@60 celebrations in Accra, Governor Dr. Johnson Asiama announced that headline inflation had dropped sharply to 9.4% in September 2025, down from 23.5% at the beginning of the year. This marks the first time in four years that inflation has returned to the BoG’s medium-term target band of 8±2 percent.

Dr. Asiama attributed the achievement to Ghana’s tight monetary policy, fiscal consolidation, and the cedi’s exceptional performance. According to the World Bank, the cedi has appreciated by over 37 percent against the U.S. dollar this year, making it the best-performing currency in Sub-Saharan Africa. He emphasized that this progress underscores the impact of coordinated economic management and resilience in the face of earlier turbulence.

Reflecting on Ghana’s economic turnaround, the governor recalled that inflation had surged to over 54 percent in late 2022, among the highest globally at the time. “We have turned the corner, but sustaining this progress will require continued discipline and policy coordination. We must protect the gains we have made,” he stated, highlighting the importance of maintaining momentum.

The Bank of Ghana reaffirmed its commitment to a stable exchange rate, anchored inflation expectations, and supporting broad-based economic recovery. With a firmer currency and measured fiscal management, policymakers are confident that the year will end with inflation well within target — signaling renewed hope for businesses, investors, and households across Ghana.

source: citi newsroom