The Bank of Ghana (BoG) has strengthened its monetary policy decision-making and communication frameworks as part of efforts to improve transparency, credibility and the effectiveness of policy transmission, Governor Dr Johnson Asiama has said.
Dr Asiama outlined the reforms undertaken by the Monetary Policy Committee (MPC), noting that the changes are intended to ensure that monetary policy decisions are based on rigorous economic analysis while giving the public greater insight into the reasoning behind them.
BoG adopts majority voting for MPC decisions
According to Dr Asiama, the MPC has moved away from a consensus-based decision-making approach to a majority-vote system since March 2025.
He explained that policymakers can assess the same economic evidence but assign different levels of importance to risks, potentially leading them to different conclusions about the appropriate monetary policy stance.
Under the revised framework, individual MPC members now publish their decision statements, outlining the data and analysis supporting their preferred policy direction.
Dr Asiama said the approach brings greater transparency to the MPC’s work and demonstrates that monetary policy decisions are based on economic evidence rather than being made arbitrarily.
He stressed that credibility does not require all members of the committee to hold identical views. Instead, it requires decisions to be evidence-based, clearly communicated and subject to institutional accountability.
Central bank expands monetary policy communication
Dr Asiama also highlighted improvements in the BoG’s monetary policy communication strategy.
He said communication should be regarded as an integral part of monetary policy rather than something that takes place after decisions have been made.
At the beginning of each MPC meeting, the Governor now briefs the media on global and domestic economic developments and outlines the major issues being considered by committee members.
The central bank has also introduced post-MPC regional media engagements, including workshops aimed at improving financial journalists’ understanding of monetary policy and reducing misinformation and disinformation.
BoG recalibrates policy implementation framework
The Governor said the BoG has also recalibrated its monetary policy implementation framework to strengthen the transmission of policy decisions through the financial system.
As part of the changes, the central bank has reintroduced the 14-day bill as its main instrument for Open Market Operations (OMOs).
Dr Asiama said the move returns the Bank’s operations to the very short end of the market, where central banks typically conduct monetary policy operations.
The change is intended to improve market functioning and strengthen the transmission of monetary policy signals to the broader economy.
New framework for foreign exchange operations
The BoG has also introduced a new Foreign Exchange Operations Framework, which Dr Asiama described as a transparent and rules-based approach to foreign exchange market interventions.
The framework is designed to clarify the objectives of the central bank’s interventions, support the accumulation of foreign exchange reserves and help reduce excessive exchange-rate volatility.
At the same time, the Governor said the framework is intended to preserve Ghana’s flexible, market-determined exchange-rate regime.
Dr Asiama said the combination of reforms in MPC decision-making, communication, monetary policy implementation and foreign exchange operations is aimed at strengthening the credibility and effectiveness of Ghana’s monetary policy framework.
