Bank of Ghana Governor, Dr Johnson Pandit Asiama, has called for the modernisation of monetary policy frameworks to enable policymakers to respond effectively to growing uncertainty in the global economy.
He said monetary policy frameworks must be resilient enough to withstand economic shocks, flexible enough to adapt to changing conditions and credible enough to anchor expectations.
Dr Asiama made the call at the High-Level Forum on the Modernisation of Monetary Policy Formulation and Implementation held at the Kempinski Gold Coast Hotel in Accra.
The Governor outlined recent reforms undertaken by the Bank of Ghana to strengthen monetary policy formulation, implementation, communication and forecasting.
He said the changing global economic environment required policymakers to look beyond responding to immediate shocks and focus on building systems capable of addressing emerging risks.
“For policymakers, the challenge is not simply to respond to the shock of the day. It is to build monetary policy frameworks that are robust enough to withstand uncertainty, flexible enough to adapt to changing circumstances, and credible enough to anchor expectations.”»
Dr Asiama also highlighted the importance of effective communication in ensuring that monetary policy decisions influence economic activity as intended.
He said clear communication was essential to narrowing the gap between the policy stance adopted by the central bank, how financial markets interpreted it and its eventual impact on the wider economy.
“It is about reducing the distance between the policy we intend, the policy the market understands, and the policy the economy ultimately experiences.”»
Forum
The two-day forum brings together central bankers and policymakers to share experiences, exchange practical ideas and strengthen collaboration on the modernisation of monetary policy frameworks.
The discussions are expected to provide an opportunity for participants to examine approaches to monetary policy formulation and implementation in the face of changing domestic and global economic conditions.
The forum forms part of broader efforts to strengthen the effectiveness, credibility and transmission of monetary policy amid an increasingly complex global economic environment.
