- Decision
- Maintain
- Rate change
- 0 bps
- monetary policy rate
- 27%
The Bank of Ghana’s Monetary Policy Committee left the policy rate unchanged at 27.0 percent at its 122nd meeting, judging that firm domestic growth and an improved external position allow it to await a renewed disinflation trend after headline inflation re-accelerated to 23.8 percent in December 2024, driven mainly by food prices, yet is projected to ease back toward the medium-term 8 ± 2 percent target. Interbank and Treasury-bill yields continued to fall, with the interbank weighted average rate down to 27.03 percent in December, alongside a pick-up in nominal private-sector credit growth to 26.3 percent and real GDP expansion of 6.3 percent in the first three quarters of 2024, up from 2.6 percent a year earlier. Gross international reserves rose to USD 8.98 billion (about four months of import cover) and a larger USD 3.8 billion current-account surplus helped the cedi pare earlier losses to end 2024 19 percent weaker against the USD. The committee noted easing global inflation and slightly firmer world growth—now put at 3.3 percent for 2024—though it cautioned that trade protectionism, geopolitics and a stronger USD could pose risks, warranting continued fiscal discipline and close monitoring of energy-sector pressures.
Rate evolution
From July 2025 to March 2026, the Bank of Ghana cut the Monetary Policy Rate by 1,100 basis points from 25.0 percent to 14.0 percent, delivering a rapid easing cycle before pausing in May 2026 and maintaining that stance in July and September 2026. The cuts were initially driven by a sharp and broad-based disinflation, declining core inflation, anchored inflation expectations, cedi appreciation, strong fiscal consolidation and a marked strengthening in external buffers, while firming economic activity and high real interest rates gave the Committee scope to support recovery. As the cycle progressed, the Committee increasingly framed policy as shifting from restoring stability to consolidating macroeconomic gains, supporting real sector recovery, job creation and financial intermediation, even as it continued to flag risks from utility tariff adjustments, commodity-market volatility and global uncertainty.
After the final cut in March 2026, the Committee held at 14.0 percent in May and again in July, first judging risks to inflation and growth as broadly balanced because headline inflation remained below target, core pressures were still easing and domestic spillovers were muted, and later concluding that the current stance remained appropriate to guide inflation into the medium-term target band while allowing time to assess evolving geopolitical developments and their potential impact on the domestic economy. In July, it noted that headline inflation had risen to 5.3 percent in June from 3.7 percent in May, largely on base effects and a temporary increase in transport fares following higher crude oil prices, while core inflation and inflation expectations also increased but remained broadly within the target band, against a backdrop of stronger domestic growth, higher private sector credit growth, continued fiscal consolidation and adequate reserve buffers. In September, it unanimously maintained the rate at 14.0 percent and again judged risks to inflation and growth as broadly balanced, noting that headline inflation rose to 5.0 percent in August from 4.6 percent in July on utility tariff pass-through and high crude oil prices but remained below the lower bound of the medium-term target band, while core inflation and inflation expectations eased, growth remained resilient, and fiscal consolidation, improved food supply and exchange-rate stability presented offsetting downside risks.