Dr. Johnson Asiama, Governor of the Bank of Ghana (BoG), has indicated that the 2025 budget will introduce targeted measures to address food inflation, which has been a major driver of overall inflation in recent months.
As the finance minister prepares to read the 2025 budget, many stakeholders have expressed concern about how the budget will reduce food inflation, among other pressing challenges affecting the economy.
However, the governor of the Central Bank, Dr. Asiama speaking in an interview with Bloomberg, acknowledged that the latest inflation reading was higher than expected, mainly due to structural issues in food prices.
He stated, “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 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 further disclosed that the Monetary Policy Committee (MPC) will meet next month to review economic conditions and adjust monetary policies accordingly.
He noted, "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 food price inflation is well controlled, we will begin to see inflation trending back to its target path.”
Comments
Post a Comment