The Bank of Ghana (BoG) has maintained the Monetary Policy Rate (MPR) at 14 per cent following the conclusion of the 131st Monetary Policy Committee (MPC) meeting, citing heightened global uncertainties and the need to preserve price stability.
Announcing the Committee’s decision at the 131st MPC briefing in Accra, Governor of the Bank of Ghana and Chairman of the MPC, Dr. Johnson Pandit Asiama said the current monetary policy stance remains appropriate despite Ghana’s improving macroeconomic performance.
“The Committee, by a unanimous decision, maintained the Monetary Policy Rate at 14.0 per cent,“
According to the Governor, although economic growth has remained resilient, private sector credit has improved and inflation has stayed below the lower bound of the Bank’s medium-term target band, emerging global developments require policymakers to remain cautious.
Dr. Asiama explained that escalating geopolitical tensions in the Middle East, rising crude oil prices, and the possibility of upward adjustments in utility tariffs present upside risks to Ghana’s inflation outlook.
“The current policy rate remains appropriate to guide inflation towards the Bank’s medium-term target band while allowing policymakers time to assess evolving global risks,”
The Committee noted that while inflation expectations remain broadly anchored and the country’s external sector continues to strengthen, it will continue to closely monitor both domestic and global developments before making any future adjustments to the benchmark interest rate.
The Monetary Policy Rate serves as the benchmark rate that influences borrowing costs across the banking sector and remains one of the Bank of Ghana’s principal tools for managing inflation and maintaining macroeconomic stability.
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