MPC maintains policy rate at 14.0% after 130th meeting

The Monetary Policy Committee (MPC) of the has maintained the country’s policy rate at 14.0 percent following the conclusion of its 130th Monetary Policy Committee meeting.

The decision reflects the central bank’s cautious approach to sustaining Ghana’s disinflation gains while supporting ongoing economic recovery and maintaining macroeconomic stability.

According to the committee, its latest assessment of both domestic and external risks to inflation — currently standing at 3.4 percent — indicated a broadly balanced outlook, with inflationary pressures continuing to ease despite some emerging risks.

The MPC noted that recent increases in fuel prices at the pumps could present short-term inflationary challenges. However, the committee expressed confidence that existing economic buffers and policy measures would help prevent a significant escalation in inflation.

“Relative exchange rate stability, increasing reserve buffers, and continued fiscal discipline are expected to help moderate these upside risks,” the committee stated.

Addressing journalists at Bank Square in Accra, the Governor of the Bank of Ghana,, explained that the committee carefully considered recent improvements in inflation moderation, exchange rate stability, and investor confidence before deciding to maintain the benchmark interest rate.

According to Dr Asiama, the central bank’s current monetary policy stance is intended to consolidate recent economic gains while ensuring inflation remains within manageable levels.

He indicated that headline inflation has continued to decline steadily in recent months, supported by tight monetary policy measures, fiscal consolidation efforts, and relative stability in the foreign exchange market.

The Governor, however, cautioned that some risks remain, particularly from fluctuations in global commodity prices, uncertainties in the international economic environment, and domestic fiscal pressures.

Dr Asiama also highlighted Ghana’s improving external sector performance as a key factor influencing the MPC’s decision.

He pointed to stronger foreign exchange inflows, increased reserve accumulation, and improved exchange rate stability as positive indicators supporting confidence in the economy and helping stabilise the cedi.

Economic analysts say the decision to maintain the policy rate signals the Bank of Ghana’s intention to strike a balance between controlling inflation and supporting economic growth.

The Monetary Policy Rate serves as the benchmark interest rate that influences lending rates, borrowing costs, savings rates, and overall financial conditions within the economy.

Changes in the policy rate directly affect commercial bank lending rates, business financing costs, household borrowing, and investment activity across multiple sectors of the economy.

Financial market observers expect the central bank to continue monitoring inflation trends, exchange rate developments, and fiscal performance closely before making any future adjustments to monetary policy.