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 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.