BoG affirms 8 ± 2% inflation target

The Bank of Ghana has reaffirmed its inflation target of 8 ± 2% for the medium-term, despite several potential upward risks. In its July 2026 Monetary Policy Report, the Central Bank cited upward revisions in utility tariffs, renewed geopolitical tensions in the Middle East, and possible adverse effects of heavy rains on the food supply chain as factors that could push inflation above the target range.

Despite these challenges, the Bank maintained that its monetary policy stance, strong sterilization efforts, fiscal consolidation, and sufficient reserve buffers should be sufficient to contain these risks over the forecast horizon. At their 131st Monetary Policy Committee (MPC) meeting, the Bank recognized the heightened global risks stemming from escalating tensions in the Middle East.

They also acknowledged the robust domestic growth and improving trade balance, which would bolster reserve buffers and strengthen the economy's resilience against global uncertainties. The MPC's decision to maintain the current inflation target was influenced by the renewed Middle East conflict and its potential to disrupt global energy markets, supply chains, and global growth.

Despite global financing conditions remaining relatively accommodative, the Bank noted that persistent external shocks could lead to tighter conditions. This could negatively impact emerging market and developing economies through trade and financial channels. The year-on-year inflation rate in Ghana rose to 5.0% in August 2026, up from 4.6% in the previous month, according to the latest figures from the Ghana Statistical Service.