MPC maintains policy rate at 14% for third consecutive meeting amid inflation risks

The Bank of Ghana’s Monetary Policy Committee (MPC) has decided to keep the policy rate at 14% for the third consecutive meeting, according to recent financial reports. This choice was made unanimously during their latest gathering, even with growing global inflation worries and higher crude oil prices. Dr. Johnson Asiama, the Governor of the Bank of Ghana, stated that the committee reviewed the robustness of the domestic economy and the slowing of underlying inflationary pressures before making this decision.

He explained that the committee saw the risks to inflation and economic growth as roughly balanced, leading to the unanimous vote to keep the monetary policy rate at 14.0 percent. The recent surge in headline inflation to 5% in August 2026, up from 4.6% in July, was primarily due to non-food inflation rising to 6.8% from 6.1%, largely influenced by adjustments in utility tariffs and soaring crude oil costs.

Despite this, the broader inflation expectations, and core measures, which ignore energy and utility prices, showed a slight easing to 4.2% in August, down from 4.3% in July. While several factors could potentially elevate inflation in the future, like further hikes in utility tariffs, soaring petroleum prices, and a stronger US dollar, domestic actions such as stricter fiscal control, enhanced food supply, and exchange rate steadiness provide counterbalancing risks, according to Dr. Asiama.

The economy demonstrated resilience during the first half of 2026, with a 6% growth in real GDP, primarily driven by the services and industry sectors. Credit growth among private sectors also rebounded significantly to 35.5% in August. However, the Bank cautioned that global happenings, especially rising crude oil prices, geopolitical tensions, and tighter international financial conditions, may pose risks to Ghana’s economic outlook.