The Bank of Ghana has decided to keep its Monetary Policy Rate steady at 14%. This decision comes in light of increasing external uncertainties and the emergence of inflationary pressures, even as the domestic economy shows signs of ongoing reforms and progress.
The announcement was made at the end of the Central Bank’s 130th Monetary Policy Committee (MPC) meeting, which took place in Accra on Wednesday, May 20, 2026.
It comes after two successive rate reductions by the Central Bank earlier this year.
The Committee observed that recent macroeconomic indicators suggest a trend towards improving economic stability, characterized by easing inflationary pressures, relative stability in exchange rates, and enhanced fiscal performance.
Ghana’s inflation forecast and economic recovery as a whole are vulnerable to foreign events that cast doubt on current global economic circumstances.
“In light of the above, the committee determined that the risks associated with inflation and economic outlook assessments were relatively balanced, and they chose to keep the monetary policy rate at 14.0%. In order to adopt the required policy measures in response to emerging information, the committee will keep a close eye on incoming data, especially that which may indicate a transfer of geopolitical pressures to the home economy,” Governor Dr. Johnson Asiama indicated.
In addition, he noted that the IMF has lowered its global growth prediction for 2026 from 3.3% to 3.1%.
Dr. Asiamah observed that capital flows to emerging and developing countries might be reversed if major central banks are prompted to tighten monetary policy in response to growing global inflation.
“The severe rise in global crude oil prices and the resurgence of inflationary pressures in both developed and developing market economies have been caused by the blockade of the Strait of Hormuz,” Dr. Asiama said.
