The Bank of Ghana (BoG) has maintained its Monetary Policy Rate at 14 percent. The bank's Monetary Policy Committee (MPC) announced this decision after its 130th meeting, citing strong macroeconomic stability.
This decision considers broadly balanced risks to both inflation and economic growth. Although global uncertainties persist, Ghana's economic foundations remain strong. The central bank emphasizes its focus on managing these internal and external factors.
This stance aligns with Ghana's strategy to stabilize its economy amidst global challenges. The country has been navigating a complex financial landscape. Prior trends show a commitment to inflation control and maintaining economic resilience.
Dr. Johnson Pandit Asiama, the Governor of the BoG, confirmed the committee's decision. He stated that ongoing conflicts in the Middle East have weakened the global growth outlook. This situation has also heightened concerns about rising energy and food prices worldwide.
The BoG noted that the Composite Index of Economic Activity (CIEA) expanded by 12.6 percent year-on-year in March 2026. This growth is significantly higher than the 2.3 percent recorded in the same period last year. Private sector credit growth, industrial production, and international trade activities support this strong domestic recovery.
Headline inflation in Ghana increased marginally to 3.4 percent in April 2026, up from 3.2 percent in March. This marks the first increase since December 2024. Non-food inflation, which rose to 4.2 percent from 3.9 percent, primarily drove this uptick due to base effects. Core inflation, however, continues to decrease, indicating easing underlying price pressures.
The Governor cautioned that severe commodity price volatility and disruptions in global supply chains could still pose threats to economic growth. Risks to the inflation outlook include sustained high crude oil prices, potentially above $100 per barrel. This could lead to higher domestic transport and utility costs. The quarterly adjustment mechanism for utility tariffs might also push non-food inflation upwards.
Despite these risks, exchange rate stability and rising reserve buffers are expected to help manage these pressures. Ghana’s gross international reserves reached $14.4 billion by May 18, 2026. This amount provides 5.7 months of import cover, an increase from $13.8 billion in December 2025.
The BoG also implemented a new policy, amending the Dynamic Cash Reserve Ratio to a uniform 20 percent. This new ratio will be maintained in domestic currency, effective June 4, 2026. This measure aims to further strengthen the banking sector's liquidity management. The Ghana cedi depreciated by 8.4 percent against the US dollar by May 15, 2026. Increased demand from the energy sector and dividend payments from corporate entities caused this depreciation.