The Bank of Ghana has maintained its benchmark monetary policy rate at 14 percent, citing rising geopolitical tensions in the Middle East and growing risks to the global inflation outlook despite continued easing in underlying domestic price pressures.
Announcing the decision at the 130th Monetary Policy Committee (MPC) meeting, Governor Johnson Pandit Asiama said the escalation of conflict in the Middle East, particularly disruptions linked to the Strait of Hormuz, had triggered higher crude oil prices and renewed inflation concerns globally.
“The Committee assessed risks in the outlook to inflation and growth as broadly balanced and decided to maintain the monetary policy rate at 14.0 percent,” he said.
Headline inflation edged up marginally to 3.4 percent in April 2026 from 3.2 percent in March — the first increase since December 2024 — largely driven by non-food inflation and exchange rate-related base effects. However, core inflation continued to decline, indicating easing underlying inflationary pressures.
The central bank warned that prolonged geopolitical tensions could keep crude oil prices above US$100 per barrel, raising the risk of higher transport and utility costs domestically.
Despite the external risks, the MPC noted that Ghana’s economic recovery remained firm. The Bank’s Composite Index of Economic Activity expanded by 12.6 percent year-on-year in March 2026, supported by stronger private sector credit growth, industrial production and trade activity.
The central bank also announced a revision to the dynamic cash reserve ratio, setting a uniform 20 percent requirement in domestic currency effective June 4, 2026.
Post Views: 18
Discover more from The Business & Financial Times
Subscribe to get the latest posts sent to your email.
