The Bank of Ghana’s Monetary Policy Committee (MPC) has begun its 131st meeting, with Governor Dr Johnson Pandit Asiama saying the Committee will assess whether the recent increase in inflation is a temporary adjustment or a sign of a more persistent inflationary trend.
The three-day meeting, which opened in Accra on July 20, 2026, is expected to focus on key economic developments, including rising global oil prices, domestic price pressures and recent liquidity management measures introduced by the central bank.
Dr Asiama said the Committee will carefully evaluate the impact of the Bank’s decision to end the pre-financing of gold purchases by the Ghana Gold Board, as well as other economic factors, before deciding on the appropriate monetary policy stance.
Addressing the opening of the meeting, the Governor said members must determine whether the recent inflation increase reflects temporary pressures from higher imported energy costs or represents a broader shift in the inflation outlook.
“The committee must reach a considered view on whether the recent increase in inflation reflects a temporary response to higher import energy costs or signals a more persistent shift in the inflation outlook,” Dr Asiama said.
He added that, “This assessment must take into account the interaction between external commodity price pressures on one hand and prospective adjustments to utility tariffs and transport fares on the other hand, which could add a domestic impulse to what began as an external shock.”
The Governor also highlighted the impact of the Bank’s decision to stop refinancing gold bar purchases, describing it as a significant shift in liquidity management.
According to Dr Asiama, the move removes one source of liquidity injection at a time when private sector credit growth is expanding rapidly.
“The cessation of bank refinancing for gold bar purchases removes one source of liquidity injection at a time when private sector credit is expanding quite rapidly,” he said.
He explained that the Committee would consider what the development means for the current monetary policy direction and whether the balance between stabilisation efforts and structural reforms remains appropriate.
The outcome of the meeting will be closely watched by businesses, investors and financial markets for signals on the Bank of Ghana’s assessment of inflation, growth prospects and the future direction of interest rates.
The MPC’s decision is expected on Wednesday, July 22, 2026, following its previous decision to maintain the policy rate at 14 percent.
By Coffie Mawuedem Noel
