An External Member of the Monetary Policy Committee (MPC) of the Bank of Ghana, Prof. Ebo Turkson, says Ghana’s efforts to bring down inflation since 2022 could not have been achieved without significant economic costs.

Speaking in his personal capacity on JoyNews’ Newsfile on Saturday, May 2, 2026, he explained that the central bank’s role in maintaining price stability is similar to providing a public good, such as roads, which always comes with financial and economic trade-offs.

He noted that the main responsibility of monetary policy is to achieve its mandate, especially controlling inflation, even if that involves difficult decisions that affect the broader economy.

According to him, Ghana’s inflation crisis reached its peak in December 2022, when inflation climbed to about 54%, creating urgent pressure for policymakers to act.

“At the height of the crisis in 2022, inflation hit 54%. There was a need to use all the tools available to bring it down,” he said.

Prof. Turkson explained that the Monetary Policy Committee responded with tight monetary measures aimed at reducing excess liquidity in the economy. These actions were intended to curb demand-driven inflation while also addressing supply-side pressures.

As part of these measures, the central bank raised its policy rate and carried out liquidity mop-up operations through the banking sector. He noted that these steps helped reduce inflation but also increased interest costs within the economy.

He further explained that when government or central bank bonds are issued to absorb excess liquidity, the interest rates involved are closely linked to the policy rate. As a result, higher policy rates during the inflation fight also led to increased borrowing and servicing costs.

Prof. Turkson added that the Bank of Ghana has continued these liquidity management operations over the years in its broader effort to restore macroeconomic stability.

His comments come at a time when the Bank of Ghana has reported a GHS15.6 billion loss, sparking renewed public debate about the cost and long-term sustainability of the central bank’s aggressive monetary policy actions during the inflation crisis.

Despite the financial impact, he maintained that the measures were necessary to prevent a deeper economic downturn and to restore price stability in the country.