The International Monetary Fund (IMF) has called on the Bank of Ghana (BoG) to maintain its tight monetary policy until inflation is firmly brought back to target levels. This comes after the completion of the Fund’s fourth review under Ghana’s US$3 billion Extended Credit Facility (ECF) programme.
While acknowledging Ghana’s economic progress, including stronger-than-expected growth, increased international reserves, and steps toward financial sector stability, the IMF warned that inflation remains a key risk.
“The authorities have made significant strides toward rebuilding international reserves and taken steps to bring inflation down,” said IMF Deputy Managing Director Bo Li. “The Bank of Ghana should maintain an appropriately tight monetary stance until inflation returns to its target.”
The IMF stressed the importance of discipline, especially after fiscal slippages in late 2024. The BoG has already taken tightening measures, contributing to a steady decline in inflation, though it still remains above target.
Beyond rate decisions, the Fund urged the BoG to reduce foreign exchange interventions and adopt a more flexible exchange rate regime. It also recommended the adoption of a formal FX intervention policy to boost transparency and confidence.
The IMF’s warning comes as the BoG’s own monetary policy path reflects caution. After holding the policy rate at 29% through mid-2024, the central bank cut it to 27% in September 2024, responding to disinflation signals. That trend continued in January 2025.
But in March 2025, the BoG reversed course, raising the rate to 28% amid concerns over persistent inflation and fiscal pressure. It maintained the rate at 28% in May, reinforcing a hawkish tilt.
All eyes are now on the next Monetary Policy Committee (MPC) meeting, scheduled for July 28–30, 2025. With the IMF urging caution and inflation still above target, analysts are watching closely to see whether the BoG will hold its stance or tighten further.
