The Monetary Policy Committee of the Bank of Ghana kept the Monetary Policy Rate at 14.0 % on 20 May 2026, judging risks to inflation and growth as “broadly balanced” amid still-subdued core price pressures, a marginal uptick in headline inflation to 3.4 % in April (from 3.2 % in March) and firm economic activity. This pause follows cumulative easing of 750 bp since September 2025, when the rate stood at 21.5 %. To reinforce liquidity management, the central bank will replace the current dynamic Cash Reserve Ratio with a uniform 20 % requirement in domestic currency from 4 June 2026. The Composite Index of Economic Activity expanded 12.6 % y/y in March, private-sector credit rebounded by 28.7 % y/y in April and the fiscal balance posted a small 0.1 %-of-GDP surplus in Q1. Externally, the current-account surplus widened to USD 3.10 bn in Q1, while gross reserves rose to USD 14.4 bn (5.7 months of import cover); the cedi has nonetheless weakened 8.4 % against the USD year-to-15 May on energy-sector demand and dividend outflows. The Committee highlighted that Middle East conflict-related oil price spikes and global policy tightening could lift imported inflation, but expects exchange-rate stability, larger reserves and fiscal discipline to temper pressures. It pledged to keep monitoring geopolitical spillovers and stands ready to adjust policy as needed.
Bank of Ghana2026-05-20
Bank of Ghana keeps Monetary Policy Rate unchanged at 14.0%
Bank of Ghana kept its policy rate unchanged at 14.0 % on 20 May 2026, judging inflation-growth risks as balanced after 750 bp of cuts since September 2025 amid headline inflation of 3.4 % in April and solid activity. The central bank will replace the dynamic cash reserve ratio with a uniform 20 % requirement for domestic-currency deposits from 4 June 2026 to bolster liquidity management.