The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has asserted that the recent inflation trends indicate the economy is on track, with inflation dropping from 54 percent to 23 percent by the end of 2023.

Dr. Addison attributes this to robust policies, tight monetary conditions, and exchange rate stability.

Factors supporting the disinflation process include stable crude oil prices, leading to steady fuel prices, and a resilient exchange rate.

He cited “monetary policy stance throughout 2023, stable crude oil prices which led to stable fuel prices with favourable impact on transportation costs, a relatively stable exchange rate environment, stronger FX reserve accumulation due to the gold for reserve programme, and favourable climatic conditions on the food supply chain process,” as the factors.

Looking ahead to 2024, he said, the expectation is for inflation to ease further, underpinned by continued implementation of sound policies till inflation expectations are firmly anchored towards our single digit objective.

“In this regard, the Bank of Ghana will continue to monitor both domestic and external developments and respond appropriately to ensure that the downward inflation trajectory observed in recent months is sustained without undermining growth. The 2023 experience of a strong reduction in inflation and stronger growth is instructive,” Dr Addison said during the joint Ghana-International Monetary Fund (IMF) press conference in Accra on Friday, January 19 on completion of the First Review of the Extended Credit Facility (ECF) Programme

Looking ahead to 2024, he anticipates further easing of inflation, emphasizing the need for sound policies.

Dr. Addison assures the banking sector's soundness, liquidity, and profitability but underscores the importance of monitoring capital restoration efforts.

He encouraged early recapitalization for sector resilience and effective financial intermediation.

While recognizing 2024's challenges, Dr. Addison expresses confidence in the economic recovery process and underscores the necessity of structural reforms for long-term sustainability.