MPC to cut policy rate to 12.5%

The Monetary Policy Committee (MPC) of the Bank of Ghana is considering a further rate cut to 12.5% in September 2026, according to Databank Research. This move would align with the Bank of Ghana's medium-term target band of 8% ± 2% for inflation, which is currently under correction. Despite external shocks, monetary policy maintained a cautious easing pace in the first half of 2026, with two rate cuts anticipated for the year following the initial reduction in March 2026.

Inflation surged to 5.3% in June 2026 from 3.8% in January, driven by price pressures from energy and imported inputs. However, easier financial conditions have facilitated credit transmission, with private sector credit growth accelerating to 41.2% year-on-year and 34.1% in real terms. The banking sector's Capital Adequacy Ratio (CAR) is at 20.4%, and the gross NPL ratio has improved to 16.1%.