- Decision
- Maintain
- Rate change
- 0 bps
- Policy rate after decision
- 14%
The Bank of Ghana’s Monetary Policy Committee (MPC) unanimously held the Monetary Policy Rate at 14.0% in September, judging risks to inflation and growth as broadly balanced amid resilient domestic activity and moderating underlying price pressures. The rate has remained at 14.0% since a 150-basis-point cut in March, following reductions to 18.0% in November 2025 and 15.5% in January. Headline inflation rose to 5.0% in August but remained below the lower bound of the 8% ±2 percentage-point target and is projected to move into the band over the next few quarters, while real GDP grew 6.0% in the second quarter and private-sector credit strengthened amid lower interest rates and easier lending conditions. Gross international reserves stood at USD 12.0 billion, equivalent to 4.5 months of import cover, supported by improved gold export receipts, while the trade surplus increased on strong exports despite a higher import bill. Globally, geopolitical tensions, supply-chain constraints and crude oil prices above USD 100 per barrel have increased inflation risks and prompted monetary tightening by major central banks. The MPC said growth prospects remain broadly positive, while utility tariffs, petroleum prices, USD strength and supply disruptions pose upside inflation risks, partly offset by fiscal consolidation, improved food supply and exchange-rate stability.
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.