The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has announced three complementary measures aimed at strengthening liquidity management and enhancing monetary policy transmission in the economy.
The measures were unveiled during the 123rd Monetary Policy Committee (MPC) press briefing on Friday, March 28, 2025, alongside a surprise 100-basis-point (bps) hike in the policy rate from 27% to 28%.
According to Dr. Asiama, the three key measures include:
- Introduction of a 273-day instrument to augment the central bank’s existing sterilization toolkit.
- Intensified monitoring of banks’ Net Open Positions (NOPs) to ensure strict compliance with regulatory requirements.
- Review of the Cash Reserve Ratio (CRR) structure to assess its broader impact on liquidity conditions and financial intermediation.
Explaining the rationale behind the unexpected policy rate hike, the MPC stated that the move was necessary to reinforce the ongoing disinflation process.
The Committee further indicated that as inflation becomes firmly anchored, it will reassess the scope for a gradual easing of the policy stance.
The latest policy adjustments signal the BoG’s commitment to maintaining macroeconomic stability amid evolving domestic and external economic conditions.
