Seven BoG MPC members vote to maintain policy rate at 14% amid inflation, external risks

All seven members of the Bank of Ghana's Monetary Policy Committee (MPC) reached an agreement to maintain the policy rate at 14%. This decision, recorded in Policy Decisions submitted by each member, was published by the Bank of Ghana. The primary reasons cited by the majority of these members for retaining the rate were external risks to the economy and concerns over rising inflation.

One member, identified as MPC MEMBER 1 in the Decision Document, pointed out that the external environment had become less favorable and cited potential weather-related disruptions due to El Niño. They cautioned that these factors could increase the risk of inflation rising above the target and recommended a cautious monetary policy approach.

Another member emphasized the impact of escalating fuel and food prices, coupled with rising shipping costs, on inflation and the exchange rate. Despite these concerns, a majority of the members believed that maintaining the policy rate would enable the committee to "evaluate the longevity of recent inflation trends and the possible effects of external shocks on the medium-term inflation trajectory".

While inflation was the principal concern for the seven members, they were also apprehensive about potential exchange rate pressures arising from increased external uncertainty. The committee highlighted a robust Ghanaian economy, citing a real GDP growth of 6.0% in the second quarter of 2026, and an 14.9% year-on-year increase in the Composite Index of Economic Activity (CIEA) in July 2026, indicating sustained growth momentum.

Business and consumer confidence were also noted to be near record highs, and there was an acceleration in private sector credit growth. However, it should be noted that Ghana's International Reserves fell from a peak of US$14 billion to US$12 billion on September 22, 2026, due to mounting payment obligations and rising external debt servicing.