The Bank of Ghana's Monetary Policy Committee (MPC) unanimously voted to maintain the policy rate at 14%. All seven members of the committee supported this decision, as detailed in their individual policy submissions released by the Bank of Ghana.
This decision primarily stems from concerns over external risks to the economy and rising inflation. Several MPC members highlighted an increasingly unfavourable global environment. They also pointed to potential disruptions from events like El Niño, which could worsen the inflation outlook.
The rate hold fits into Ghana's broader economic narrative of balancing growth with price stability. The country has faced pressures from imported inflation and exchange rate depreciation. This cautious approach aims to manage these challenges while supporting economic activity.
One MPC member, identified as MPC MEMBER 1 in the decision document, stated, "These developments pose upside risks to the inflation outlook and warrant a cautious monetary policy stance." This member further expressed worry that "For Ghana, these developments could lead to higher imported inflation and renewed pressure on the exchange rate and external sector." The committee's collective view was to allow time to assess recent inflation developments.
The decision implies a continued focus on monitoring inflation and external shocks. Businesses and consumers will watch for how these factors evolve and influence future monetary policy. The Bank of Ghana aims to ensure price stability while supporting sustainable economic growth.
Rising fuel and food prices, alongside increased shipping costs, were significant concerns for the MPC. These factors contribute to higher energy and transport expenses, pushing up overall inflation. Utility tariff adjustments and domestic petroleum price increases also influenced the committee's inflation outlook.
Despite these pressures, some MPC members remained optimistic about Ghana's economic strength. They noted a real Gross Domestic Product (GDP) growth of 6.0% in the second quarter of 2026. The Composite Index of Economic Activity (CIEA) also expanded by 14.9% year-on-year in July 2026, indicating sustained growth momentum. Business and consumer confidence remained high, and private sector credit growth accelerated.
However, the country's International Reserves declined from US$14 billion to US$12 billion by September 22, 2026. This reduction was due to elevated payment obligations and increasing external debt service. The MPC's decision reflects a careful balancing act between supporting growth and managing these financial vulnerabilities. The unanimous vote underscores a shared understanding of the current economic challenges and the need for a stable monetary policy stance.