MPC to cut policy rate to 12.5%

The Monetary Policy Committee (MPC) is considering a 150 basis point reduction in the policy rate to 12.5% in September 2026, according to Databank Research. This move would align with the anticipated decline in inflation towards the Bank of Ghana's target band of 8% ± 2%. Despite external shocks, monetary policy in the first half of 2026 maintained a cautious easing approach, with expectations of two rate cuts for the year still in place following the initial reduction in March 2026, which brought the policy rate down to 14.0%.

Although inflation surged to 5.3% in June 2026 from 3.8% in January 2026 due to price pressures from energy and imported inputs, it remained relatively stable overall. Easier financial conditions have facilitated credit transmission, with private sector credit growth increasing to 41.2% year-on-year and 34.1% in real terms. The banking sector's Capital Adequacy Ratio (CAR) stands at 20.4%, and the gross Non-Performing Loan (NPL) ratio has improved to 16.1%.

In July 2026, the MPC opted to keep the policy rate steady at 14%, citing concerns over rising global prices, transport costs, and the ongoing conflict in the Middle East.