BoG to maintain policy rate at 14% – IC Insights
According to the market research firm, the real policy rate of 9.0% suggests room for a modest cut in the policy rate if the external risk events were less volatile.
The Bank of Ghana's Monetary Policy Committee is expected to keep the policy rate at 14% during their September meeting, according to IC Insights. The committee's policy rate of 9.0% indicates potential for a small rate cut if external risks were less unpredictable. However, they prefer to maintain this room to handle unexpected inflation spikes without immediate rate hikes.
IC Insights believes the 91-day yield has hit its lowest point and needs to be re-priced to restore positive real yield. At the July 2026 meeting, the Bank of Ghana kept its policy rate at 14% due to increasing external risks to inflation despite a strong domestic economy. The Governor of the Bank, Dr. Johnson Asiama, stated that recent inflation developments align with their forecasts, though June's headline inflation increased due to temporary factors.
The MPC notes that inflation is approaching the lower end of the Bank's medium-term target range, primarily due to base effects. With a sustained policy rate of 14.0%, the cost of credit will remain largely unchanged for the next two and a half months.
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