By Ghana’s current ultra-low inflation of 3.3% is not sustainable in the long term and should be used as an opportunity to cut interest rates and stimulate job-rich economic growth, Professor Godfred Bokpin has urged.
Speaking on Joy FM’s Super Morning Show on March 19, the economist weighed in on President Nana Addo Dankwa Akufo-Addo Mahama’s assertion that Ghana’s economy is resilient enough to withstand external shocks, including the ongoing Israel-US-Iran conflict.
“Low inflation is desirable in itself. But for a developing country like Ghana, very low inflation coupled with low yield is not good for us and it cannot be sustained for long,” Prof Bokpin said.
He explained that Ghana’s disinflation has not been driven by structural transformation, productivity gains, or major infrastructure development factors that allow advanced economies such as the United States and United Kingdom to sustainably target inflation of around 2%. Without these foundations, he warned, the country’s current low-inflation environment is fragile.
Prof Bokpin projected that inflation will gradually rise to between 6% and 8% in the medium term, which he described as a more appropriate level for a developing economy.
The economist also raised concerns about the quality of Ghana’s growth. Despite a reported 6% economic expansion in 2025, he described the growth as “subdued” and insufficient to significantly reduce poverty or tackle food insecurity.
“If you look at the Bank of Ghana’s own job tracking, it remains flat year on year 2025 compared to 2024. There is a need for job-rich growth,” he noted.
To address these challenges, Prof Bokpin recommended that the Bank of Ghana cut the policy rate, free up liquidity in the economy, and direct resources toward the real sector to drive productivity and create employment opportunities.
His assessment highlights ongoing debates over Ghana’s monetary policy, with economists and policymakers examining how best to balance low inflation, interest rates, and sustainable growth in a developing economy.
