The International Monetary Fund (IMF) has urged the Bank of Ghana to maintain a tight monetary policy stance to firmly consolidate recent progress in reducing inflation, despite growing pressure for interest rate cuts.
Speaking at a press briefing in Washington, IMF Communications Director Julie Kozack commended Ghana’s steady disinflation trend, noting that headline inflation had dropped from a peak of 54% at the end of 2022 to 13.7% by June 2025.
“Going forward, it will be important for monetary policy to remain sufficiently tight, consistent with bringing inflation down to the Bank of Ghana’s target range of 8 percent, plus or minus 2 percentage points,” she emphasized.
This advice comes as the Bank of Ghana’s Monetary Policy Committee (MPC) begins its 125th meeting to review key economic indicators, including inflation trends, exchange rate performance, and financial sector developments.
The three-day meeting is expected to influence future policy direction, especially with the central bank’s benchmark interest rate currently holding at 28%.
Despite the remarkable disinflation, headline inflation has declined for six straight months from 23.8% in December 2024 to 13.7% in June 2025, some business leaders and economists are calling for interest rate reductions to stimulate private sector credit and overall economic activity.
However, the IMF cautioned against premature easing of monetary policy. “Ghana has made good progress since the beginning of the programme in reducing inflation,” Kozack reiterated. “But it is crucial to stay the course and ensure that the disinflation trend is sustained.”
Ghana’s inflation control efforts are part of broader macroeconomic reforms under the IMF’s $3 billion Extended Credit Facility (ECF) programme, which aims to restore economic stability, ensure debt sustainability, and promote inclusive growth.
Nonetheless, concerns linger over the fragility of the recovery and the need to solidify gains before easing policy.
With inflation still outside the central bank’s ideal target band of 6%–10%, many expect the policy rate to be held steady, reinforcing the IMF’s position that now is not the time to relax.
