The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has kept the policy rate at 14%.
This was announced by the chair of the MPC, Governor Dr Johnson Pandit Asiama, in Accra during the 132nd MPC press conference on Thursday, September 24.
He stated that headline inflation, at 5 per cent in August, is well below the lower bound of the 8±2 per cent band despite domestic cost pressures in housing, transport and services, with exchange rate stability containing imported inflation and expectations easing across all surveyed groups.
He said the average banking lending rate declined by 15.9 per cent. Private sector credit growth rebounded.
The banking sector, he said, remained solvent, profitable and liquid.
Regarding the Non-Performing Loan Ratio, he said that it declined to 15.7 per cent.
On the global scene, Dr Asiama said that global tensions have constricted global supply chains.
On the domestic front, he said, the committee observed continued economic resilience activities.
“The committee, by unanimous decision, maintained 14%,” he said.
Background:
The decision marks the third consecutive hold at 14 per cent.
The rate was cut aggressively from 27 per cent in early 2025 to 21.5 per cent in September 2025, 18 per cent in November 2025, 15.5 per cent in January 2026, and finally to 14 per cent in March 2026 — the lowest since October 2021. The 129th MPC in March described it as a cumulative 1,400 basis points easing since July 2025. 91e0
In July, the MPC also kept the rate at 14 per cent citing Middle East tensions and crude oil staying around $100 per barrel as a risk to inflation.
Analysts had gone into this September meeting divided. Inflation had risen from 4.6 per cent in July to 5 per cent in August, ending a 14-month disinflationary run from 54.1 per cent in December 2022. The cedi has also come under renewed pressure, with weaker gold prices and higher FX demand flagged as risks.
Minutes from previous MPC meetings published by the BoG show members voting to hold at 14 per cent described it as a “cautious pause in the easing cycle, aimed at safeguarding macroeconomic stability in an increasingly uncertain environment” and warning that cutting too soon only to tighten aggressively later would cost credibility.
With inflation at 5 per cent still comfortably below the 6-10 per cent target band, the BoG says the current stance preserves gains while it monitors oil markets, utility tariff adjustments, liquidity conditions, and reserve build-up. Gross reserves were last reported around $14.5 billion, equivalent to 5.8 months of import cover in February.
