[5] As you may be aware, the Ghanaian economy witnessed consistent growth periods in the recent past with real GDP growth increasing steadily from 3.7 percent to 7.3 percent within a spate of nine years. To a large extent this growth phase of the Ghanaian economy was largely supported by a policy environment aimed at macroeconomic stability which anchored inflation expectations.
This was combined with structural reforms, particularly in the financial sector, needed to increase financial intermediation and promote economic growth. [6] Although growth was achieved, the reemergence of macro instability underpinned by both external and domestic factors such as considerable credit expansion to both government and the private sector dislodged inflationary expectations and increased inflationary pressures in the economy.