In 2025, the Bank of Ghana recorded a loss of GH¢15.6 billion, highlighting the significant financial toll of its aggressive push to stabilise the economy after years of crisis-driven tightening measures.

Looking at the audited figures, the deficit widened considerably from GH¢9.49 billion in 2024, while negative equity deteriorated further to GH¢93.82 billion from GH¢58.62 billion. At face value, this reflects a markedly weakened balance sheet, largely due to the accumulated costs of sterilisation and liquidity control operations. However, from a policy perspective, the outcome is more complex. The central bank has largely fulfilled its core mandate by successfully reducing inflation and stabilising expectations.

From a price stability standpoint, inflation dropped sharply from 23.8 per cent in 2024 to 5.4 per cent by the end of 2025, before declining further to 3.2 per cent in March 2026—falling below the bank’s medium-term target range. This rapid disinflation represents a clear shift away from the volatility that followed Ghana’s post-pandemic economic challenges, ushering in more predictable pricing conditions for both households and businesses.

Across the broader economy, the impact is gradually becoming evident. Lower inflation has supported the stability of the cedi, reduced fluctuations in domestic money markets, and eased pressure on interest rates. As a result, credit conditions are beginning to improve, with early signs of increased lending to the private sector as confidence slowly returns to the financial system. Nonetheless, these gains have come at a high cost, with spending on open market operations nearly doubling to GH¢16.73 billion due to the expenses involved in absorbing excess liquidity.

At its core, this situation reflects a familiar central banking trade-off. While tightening measures successfully curbed inflationary pressures, they also imposed substantial quasi-fiscal costs that weakened the bank’s financial position. Given that profitability is not the primary objective under its statutory mandate, the losses underscore the scale of intervention required to restore stability. The key issue going forward will be sustaining these gains while rebuilding capital buffers, possibly through retained earnings, balance sheet adjustments, or external recapitalisation support.