4 of 6 MPC Members Support 150bps MPR Cut at BoG
The Bank of Ghana, at its 129th Monetary Policy Committee (MPC) meetings held from 16 to 18 March 2026, reduced the Monetary Policy Rate (MPR) by 150 basis points to 14.0 percent.
The decision according to BOG saw four of the six members present voting for the cut, while one member pushed for a more cautious 75 basis point reduction and another urging the rate be left unchanged.
Reasons
Member 1 supported the 150bps cut, citing fourteen consecutive months of declining inflation, strong reserves of US$14.5 billion, a widening trade surplus, and robust GDP growth of 6 percent while flagging geopolitical tensions as a risk to watch.
Member 2 also backed the 150bps cut, acknowledging global oil market uncertainty from the US-Israel-Iran conflict but arguing Ghana’s strong external buffers provided sufficient insulation to justify easing.
Member 3 was more cautious, voting for only a 75 basis point cut to 14.75%. Though supportive of easing, the member argued that rising oil prices, non-food inflation pressures, utility tariff risks, and global supply chain disruptions warranted a measured rather than aggressive move.
Member 4 voted for the 150bps cut, balancing optimism about Ghana’s domestic recovery against the risks posed by the Middle East conflict, ultimately concluding that the country’s buffers were strong enough to absorb potential shocks.
Member 5 supported the150 bsp cut, pointing to inflation remaining below target, a strong external sector, and a still-negative output gap meaning the economy had room to grow without reigniting inflation.
Member 6 was the sole voice for holding the rate at 15.5%, arguing that the escalating Middle East conflict, oil prices hovering around US$100 per barrel, and disrupted global supply chains posed too great an inflation risk to justify any reduction at this time. The member, however, signalled willingness to support a cut at the next meeting should conditions improve.
The next Monetary Policy Committee is scheduled to take place in May 2026.
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