Economy strong despite global headwinds – Governor

The Bank of Ghana (BoG) has kept its Monetary Policy Rate (MPR) at 14 percent, citing robust domestic economic activity and a balanced outlook for inflation and growth. The Monetary Policy Committee (MPC) unanimously decided to maintain the policy rate at 14 percent. Governor Dr Johnson Pandit Asiama announced this at the 132nd MPC press conference, stating the economy showed resilience despite global uncertainties.

He said the committee saw risks to inflation and growth as broadly balanced, and unanimously voted to keep the MPR at 14.0 percent. Global economic activity remained strong in the first half of 2026, though geopolitical tensions, high energy prices, and supply chain disruptions posed risks. The IMF projected global growth at 3 percent for 2026.

Internally, Ghana's economy grew 6 percent in the second quarter of 2026, mainly driven by services and industry. However, this was slower than the 6.6 percent growth in the same period of 2025. The Composite Index of Economic Activity rose 14.9 percent year-on-year in July, up from 6.1 percent in the previous year. Inflation rose to 5 percent in August from 4.6 percent in July, mainly due to higher non-food prices from utility tariff changes and higher crude oil prices.

Despite this, headline inflation stayed below the BoG's target band of 8 percent, plus or minus two percentage points. Underlying inflation pressures were contained, with core inflation easing to 4.2 percent in August from 4.3 percent in July. Interest rates also declined, with the 91-day Treasury bill rate falling to 5.4 percent in August from 10.3 percent a year earlier, and the average bank lending rate dropping to 15.9 percent from 24.2 percent.

Private sector credit growth rebounded strongly to 35.5 percent in August, compared to 13.3 percent in August 2025. Exports grew to $8.85 billion in the first eight months of 2026, up from $6.69 billion in the same period last year. Gross international reserves stood at $12 billion, covering 4.5 months of imports as of September 22, 2026.

The MPC would continue to monitor developments closely, especially global energy prices, currency movements, utility tariffs, and supply chain disruptions.