Bank of Ghana Governor Dr Johnson Pandit Asiama has warned that renewed hostilities around the Strait of Hormuz have increased volatility in global energy markets, with Brent crude oil rising above US$85 per barrel earlier this week, posing risks to Ghana’s inflation outlook.
Delivering his opening remarks at the 131st Monetary Policy Committee (MPC) meeting on July 20, Dr Asiama said headline inflation had increased for three consecutive months from 3.2 per cent in March to 5.3 per cent in June, driven mainly by transport and haulage costs, signalling the end of the prolonged disinflation phase as inflation returns toward the target band.
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He noted that Ghana’s economy grew by 6.4 per cent in the first quarter, up from 6.2 percent a year earlier, while the GDP deflator eased to 4.1 percent.
He also said real private sector credit had expanded by 34.1 per cent compared with a 4.5 per cent contraction a year ago, the exchange rate remained broadly stable through the first half of July, and the banking sector remained sound and well-capitalised despite elevated non-performing loans.
Dr Asiama further said the MPC Educational Observership Programme forms part of the Bank’s efforts to enhance transparency, strengthen policy credibility and build stronger linkages between academia and policy institutions.
