By Prince Antwi

Copyright ghanaguardian

The Bank of Ghana (BoG) says it expects inflation to drop to single digits before the end of 2025, earlier than initially projected.

Director of Research at the Central Bank, Dr. Philip Abradu-Otoo, disclosed this during an interview on PM Express Business Edition with George Wiafe. He attributed the revised outlook to sustained monetary tightening, ongoing fiscal consolidation, and improved food supplies, which have accelerated the pace of disinflation.

“We have seen a rapid disinflation over the past months, and we expect that to be sustained going forward,” Dr. Abradu-Otoo said.

According to him, the Bank had earlier forecast single-digit inflation in the first quarter of 2026, but recent economic developments have moved the timeline forward to the last quarter of 2025, provided no major shocks disrupt the economy.

He added that this positive outlook was a key factor behind the Monetary Policy Committee’s (MPC) recent decision to cut the policy rate by 350 basis points to 21.5%.

Dr. Abradu-Otoo assured that the BoG remains committed to sustaining the gains made so far.

“The Bank of Ghana will definitely continue with what we are doing to ensure that things do not get out of hand. We will maintain policy consistency and build reserves to keep a firm grip on the market,” he emphasized.

Responding to concerns about the size of the rate cut, he explained that while all MPC members agreed on the need to reduce the policy rate, the final margin of the cut was determined by vote.

“The decision was unanimous in terms of the need for the policy to be cut; however, the margin was based on a vote,” he clarified.

The BoG maintains that its policy actions are data-driven and aligned with the goal of consolidating economic stability.