Bank of Ghana keeps policy rate at 14%

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has maintained the policy rate at 14% during the 132nd MPC press conference on Thursday, September 24 in Accra. Chair of the MPC, Governor Dr Johnson Pandit Asiama, reported that headline inflation in August was 5% - well below the 8±2% lower bound. He attributed this to stability in exchange rates, which curbed imported inflation.

Domestic cost pressures in housing, transport and services did not pose a significant threat. The average banking lending rate declined by 15.9%. Private sector credit growth also rebounded. The banking sector was deemed solvent, profitable and liquid. The Non-Performing Loan Ratio fell to 15.7%. Dr Asiama noted that global tensions have disrupted global supply chains.

The MPC unanimously decided to keep the rate at 14%, marking the third consecutive hold. This decision is the lowest since October 2021, after aggressively cutting from 27% in early 2025 to 14% in March 2026 - a cumulative 1,400 basis points easing since July 2025. Inflation had risen from 4.6% in July to 5% in August, ending a 14-month disinflationary period.

Analysts were divided before the September meeting due to inflation's upward trend and pressure on the cedi from weaker gold prices and higher foreign exchange demand. The BoG maintains the rate is a "cautious pause in the easing cycle" aimed at preserving macroeconomic stability despite uncertainties. As of February, gross reserves stood at around $14.5 billion, equivalent to 5.8 months of import cover.