Bank of Ghana Maintains Policy Rate at 28 Percent, Emphasizes Need for Tight Stance to Sustain Disinflation Process

Strategic Insights -

The Monetary Policy Committee (MPC) of the Bank of Ghana has opted to keep the policy rate unchanged at 28 percent following its 124th scheduled meeting. The committee reached this decision unanimously after assessing recent economic developments. Despite signs of easing inflationary pressures, the Governor of the Central Bank, Dr Johnson Asiama, emphasized the need for a cautious approach due to uncertainties in the global economy and risks to the domestic outlook. The committee forecasts a continued easing of inflationary pressures, with inflation expected to decline more rapidly, reaching the medium-term target in the first quarter of 2026.

Key Takeaways:

  • The Monetary Policy Committee (MPC) of the Bank of Ghana maintained the policy rate at 28 percent following its 124th scheduled meeting.
  • The committee reached this decision unanimously after assessing recent economic developments.
  • Despite signs of easing inflationary pressures, the Governor of the Central Bank, Dr Johnson Asiama, emphasized the need for a cautious approach due to uncertainties in the global economy and risks to the domestic outlook.
  • The committee forecasts a continued easing of inflationary pressures, with inflation expected to decline more rapidly in the coming quarters.
  • The policy rate, used by the Central Bank to influence lending rates and control inflation, remains a key instrument in safeguarding Ghana's macroeconomic stability.
  • The Governor highlighted the importance of sustaining the current policy direction to maintain a tight policy stance and ensure a sustained disinflation process.

Statistics:

  • Policy rate maintained at 28 percent.
  • Inflation expected to decline more rapidly, reaching the medium-term target in the first quarter of 2026.
  • Forecast indicates continued easing of inflationary pressures.
  • Policy rate remains a key instrument in safeguarding Ghana's macroeconomic stability.
  • Committee votes to maintain policy rate by consensus.

Sources:

  • "Bank of Ghana Maintains Policy Rate at 28 Percent" (Ghana Web, May 23, 2025)