The cost of living remains a major concern for Ghanaians, but Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, says there is some good news as inflation remains relatively low.
Dr Asiama acknowledged that inflation increased from 3.7 per cent in May to 5.3 per cent in June but said the figure was still below the Bank of Ghana’s target range.
According to the Governor, the recent increase was mainly driven by higher transport costs following a rise in global crude oil prices.
He, however, described the increase as temporary and assured stakeholders that the central bank would continue to closely monitor developments to keep inflation under control.
“We believe this is temporary, and we will continue to monitor developments closely to ensure that inflation remains under control,” Dr Asiama said during a stakeholders’ engagement in Sunyani.
He stressed that maintaining low and stable inflation was important in addressing concerns about the cost of living and supporting economic activity.
“Low and stable inflation is good for everyone. It helps families manage their household budgets, allows businesses to plan with greater confidence, and encourages investment,” he said.
The Governor’s comments come as households continue to pay close attention to prices of essential goods and services amid concerns over the cost of living.
Dr Asiama also provided an update on developments in Ghana’s banking sector, describing it as strong and stable.
He said banks were well-capitalised, deposits continued to grow and the quality of bank loans had improved.
He further disclosed that lending to the private sector had increased significantly, with credit to businesses and households growing by more than 41 per cent in June this year, compared with about 9 per cent during the same period a year earlier.
“Most importantly, banks are lending more to the private sector. Credit to businesses and households grew by more than 41 percent in June this year, compared with about 9 percent a year earlier,” Dr Asiama said.
He explained that the increase in private-sector credit would give more businesses access to financing to expand their operations, create jobs and contribute to economic growth.
Dr Johnson Pandit Asiama said continued stability in the banking sector, coupled with low inflation, would help create a more favourable environment for businesses and households.
While concerns over the cost of living remain, the Bank of Ghana says developments in inflation and increased private-sector lending point to improving conditions that could support economic activity in the months ahead.
By : Rachael Djabakie