In May 2007, Ghana formally adopted an inflation targeting framework for its monetary policy. This meant that price stability had become the central bank’s primary objective. Ghana is only the second country in sub-Saharan Africa, after South Africa, to adopt such a regime. Ghana’s inflation target is five per cent while South Africa’s is a 3-6 per cent band. Such low rates are common among countries in the region, even those without explicit targeting regimes. (...)