The governor of the Bank of Ghana stated on Monday that while the same geopolitical uncertainty is driving up gold prices, the U.S.-Israeli war against Iran poses a new threat to Ghana’s inflation forecast through higher oil costs and tighter global financial conditions.
Since July 2025, when inflation began to decrease at a record rate, the central bank has been lowering interest rates. On March 18, it is anticipated to make its most recent ruling.
Governor Johnson Asiama cautioned that the recent improvement in Ghana’s economy could be impacted by the Middle East conflict during the commencement of the monetary policy committee meeting on Monday.
He did, however, add that the increase in worldwide gold prices would lessen the impact on Africa’s biggest gold producer.
“Today there is a … threat to the disinflation trajectory and whatever decision the committee takes, our communication must reflect both the progress that has been achieved and the risks that remain,” Asiama told reporters.
Over the past year, Ghana has relied significantly on gold to maintain its economy. Gold export revenue nearly doubled from $10.3 billion in 2024 to about $20 billion in 2025, contributing to a dramatic improvement in the current account.
Source: newsthemegh.com