Accra: Minister of Finance, Dr. Cassiel Ato Forson, has expressed confidence that Ghana's inflation will remain under control despite a recent uptick, emphasizing that the responsibility for managing inflation and stabilizing the cedi should not rest solely with the Bank of Ghana. Speaking on JoyNews, following the presentation of the 2026 Mid-Year Budget Review in Parliament, Dr. Forson highlighted the necessity of close coordination between fiscal and monetary authorities to effectively manage inflation.
According to Ghana Web, Dr. Forson argued that inflation driven by supply-side factors, such as food and fuel prices, cannot be addressed through monetary policy alone. He stressed that government policy interventions are often more effective than repeated increases in interest rates when dealing with inflation fueled by rising food prices. He noted, "The Bank of Ghana alone cannot anchor the currency. It is also the role of the fiscal authorities."
The Finance Minister pointed out the need for similar interventions when fuel prices rise, stating that government measures can help cushion the impact on consumers and inflation. Dr. Forson recalled previous government actions, such as the introduction of temporary relief measures to reduce fuel prices and contain inflationary pressures, illustrating the shared responsibility between the government and the central bank.
Dr. Forson also highlighted the amendment of the Bank of Ghana Act, which has made inflation targeting a shared responsibility between the Ministry of Finance and the central bank. He explained that this framework ensures both institutions understand their respective roles in achieving the country's inflation target, fostering better coordination to tame inflation.
Addressing concerns over the recent increase in inflation, Dr. Forson remained optimistic that inflation would stay within the Bank of Ghana's target range of 8 percent, plus or minus 2 percentage points. He reiterated the official target range of 6 to 10 percent and expressed hope that inflation would end the year at about 5.5 percent.
The minister's comments come amid renewed attention on inflation after recent data showed a slight upward trend, although he maintained that the broader outlook remains positive.