Bank of Ghana Governor Johnson Asiama has warned that Ghana's foreign exchange reserves and its inflation outlook are facing new pressures. These risks stem from rising global energy prices caused by the ongoing Middle East conflict.
Opening the 130th Monetary Policy Committee (MPC) meeting in Accra, Dr. Asiama stated that inflation has seen its first increase since December 2025. He attributed this to a 'dual channel inflation risk.' This risk comes from disruptions in domestic energy supplies and external pressures on commodity prices linked to the Middle East situation.
Dr. Asiama outlined several risks. First, the prolonged Middle East conflict and its impact on energy prices create significant challenges. Second, domestic energy supply disruptions add to these external cost pressures. These factors could unsettle inflation expectations, making it harder to keep them under control. The MPC meeting specifically aims to address these growing concerns.
The closure of the Strait of Hormuz has directly increased global crude oil prices. This affects fuel costs, transport fares, import expenses, and overall consumer prices in Ghana. The International Monetary Fund has lowered its 2026 global growth forecast to 3.1 per cent due to the conflict's effects on demand and supply.
Despite these global issues, Ghana's economy showed resilience in the first quarter of 2026. The current account surplus was larger than in the previous year, by US$652 million. However, Governor Asiama cautioned that sustained energy price inflation could quickly undo these gains. The country is navigating a more challenging global economic environment.
The MPC will discuss whether to adjust interest rates. The goal is to prevent inflation expectations from becoming unstable. They will also review how effectively monetary policy is supporting lending and credit growth. A strong banking sector is essential for Ghana's economic growth. It must be able to absorb economic shocks and provide more credit.
Governor Asiama stressed the importance of a robust banking sector. He also highlighted the need for addressing financial stability concerns. This will ensure the banking system supports economic expansion through increased lending. The MPC's policy rate decision is expected on Wednesday. This announcement comes as markets watch developments after Ghana's US$3 billion IMF program ended.
In March 2026, the Bank of Ghana reduced its policy rate by 150 basis points. The rate went from 15.5 per cent to 14 per cent at the previous MPC meeting. This move aimed to support economic recovery and ease monetary conditions.