The Bank of Ghana (BoG) has deployed Artificial Intelligence to strengthen its inflation forecasting and improve the way it gathers and analyses economic data.
The report indicates that the Bank of Ghana (BoG) has deployed Artificial Intelligence to strengthen its inflation forecasting and improve the way it gathers and analyses economic data.
It further notes that first Deputy Governor Dr Zakari Mumuni stated the technology is part of the central bank’s wider adoption of modelling tools and big data technologies.
He stated the tools are helping the Bank improve its forecasts and provide better information for monetary policy decisions.
Dr Mumuni stated this at the 4th Annual Statistics and Data Science Conference in Tamale.
According to him, the use of AI and other modelling tools has helped the Bank improve the accuracy of its inflation predictions, including forecasts made ahead of official data releases.
“We also employ machine-learning models to complement standard econometric models in forecasting GDP and performing text-mining analytics.”
He stated technology is also changing the way financial supervision is conducted.
“Where supervisors previously relied heavily on static monthly spreadsheets requiring manual reconciliation, increasingly granular data can be validated as it arrives, allowing risks to be identified earlier.”
Dr Mumuni explained that the Bank also uses econometric techniques and its Quarterly Projection Model to assess economic developments and guide policy choices.
“Through econometric techniques and our Quarterly Projection Model within a Forecast and Policy Analysis System, we identify emerging trends, assess risks and consider the likely outcomes of different policy choices.”
However, he cautioned that technological tools cannot replace human judgement in economic policymaking.
“Technology can strengthen our intelligence, but it does not remove the need for human judgment.”
He recalled the charge given by the Governor of the Bank of Ghana during his swearing-in in February 2025 to adopt a more proactive approach to managing inflation.
The Governor had stated the Bank would “adopt a more proactive and precise approach to managing inflation, leveraging advanced data analytics and artificial intelligence.”
