The Bank of Ghana’s Monetary Policy Committee (MPC) has maintained the policy rate at 14%, extending the rate hold to a third consecutive meeting as the central bank weighs renewed inflationary pressures against improving fiscal and exchange rate conditions.
The decision was taken at the MPC’s latest meeting and keeps the policy rate at the level introduced in March 2026. The Committee also maintained the rate at its May and July meetings.
Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, said the decision reflected a balance between emerging upside risks to inflation and factors that could help contain price pressures.
“Continued fiscal consolidation, improved food supply conditions, and exchange rate stability” were identified as offsetting downside risks to the inflation outlook, he said.
“Based on these considerations, the MPC viewed the balance of risks to inflation and growth as broadly balanced,” Dr Asiama added.
The decision comes as headline inflation rose to 5% in August 2026 from 4.6% in July, although the figure remains below the lower bound of the Bank’s 8±2% medium-term target band.
The Governor said the inflation outlook continues to face upside risks from higher crude oil prices, utility tariff adjustments, transport costs, exchange rate movements and disruptions to global supply chains.
At the same time, the MPC is taking account of continued fiscal consolidation, improving food supply conditions and relative exchange rate stability, which have helped offset some of the pressures on inflation.
Economic activity has also remained resilient, with real GDP growth reaching 6% in the second quarter of 2026. Private-sector credit growth also strengthened to 35.5% in August, while the average lending rate fell to 15.9% from 24.2% a year earlier.
The latest decision therefore leaves the policy rate unchanged at 14% as the central bank balances the need to preserve recent disinflation gains with support for economic activity.
