{
  "id": 18655543,
  "title": "14% policy rate from May to September protected stability – BoG Governor tells Parliament",
  "url": "https://urgent.news/2026/11/07/14-policy-rate-from-may-to-september-protected-stability-bog-governor",
  "topic": "world",
  "section": "World",
  "published": "2026-11-07T06:48:18.000Z",
  "source": {
    "name": "3News",
    "slug": "3news",
    "url": "https://3news.com/economy/bog-governor-asiama-defends-14-policy-rate"
  },
  "original_language": "en",
  "account": "Bank of Ghana Governor Dr Johnson Pandit Asiama informed Parliament's Committee on Economy and Development that maintaining a 14 percent policy rate from May to September 2026 helped maintain macroeconomic stability. Asiama explained at a recent hearing on the first-half monetary policy that the decision to pause rate cuts, after lowering the rate from 18.0 percent to 15.5 percent in January and then to 14.0 percent in March, was a deliberate step taken in response to rising inflationary risks. These risks were fueled by the conflict in the Middle East driving up global crude oil prices, utility tariffs adjustments, and the inflation rate beginning to climb past its March low of 3.2 percent. The central bank maintained the policy rate at 14 percent during the July and September meetings, still holding steady today.\n\nAsiama warned of potential inflation hazards, including crude oil prices above $100 per barrel, interest rate hikes by the U.S. Federal Reserve and the European Central Bank, domestic price pressures, and the effects of a strong El Niño. He believed it was prudent to pause the easing cycle, maintain the credibility built through the disinflation process, and let the previous policy reductions' impact on the economy play out. In October 2026, headline inflation climbed to 5.5 percent, up from 4.6 percent in July and 5.2 percent in September, but it remained below the 6 to 10 percent medium-term target range. Asiama reported that real GDP grew by 6.4 percent in the first quarter of 2026 and 6.0 percent in the second quarter. The average bank lending rate dropped from 27.0 percent in June 2025 to 15.6 percent in June 2026, while private sector credit surged 41.2 percent. The banking sector assets increased by 30.7 percent to GH¢502.4 billion by June 2026, with a capital adequacy ratio of 20.4 percent and the non-performing loans ratio falling from 23.1 percent in June 2025 to 15.7 percent in August 2026. Over the first half, Ghana achieved a US$8.81 billion trade surplus and a US$5.1 billion current account surplus. Gross international reserves stood at US$12.94 billion (5.0 months of import cover) at the end of June and US$12.05 billion (4.5 months) as of September 22. Asiama also emphasized the introduction of a uniform 20 percent domestic-currency cash reserve ratio on June 4, a rules-based foreign exchange framework, and the Ghana Accelerated National Reserve Accumulation Programme (GANRAP) aiming for 15 months of import cover by 2028.",
  "summary": "Bank of Ghana Governor Dr Johnson Asiama says oil prices above US$100 a barrel and utility tariff adjustments justified pausing rate cuts at 14%.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Joy Business",
        "title": "Policy rate of 14% between May and September 2026 was meant to preserve economic stability – BoG Governor",
        "url": "https://urgent.news/2026/11/07/policy-rate-of-14-between-may-and-september-2026-was-meant-to",
        "published": "2026-11-07T05:07:15.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}