The Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, has indicated that rising geopolitical tensions in the Middle East are slowing efforts to reduce Ghana’s policy interest rate to single digits.
Speaking at the Ghana-UK Investment Summit 2026, Dr Asiama explained that instability in the Middle East has triggered global economic uncertainty, influencing inflation expectations, energy prices and financial conditions across many countries, including Ghana.
He noted that although domestic inflation has been easing and initially supported expectations of faster monetary easing, external shocks have disrupted the trajectory.
According to him, fluctuations in global oil prices, increased shipping costs and ongoing supply chain disruptions linked to the crisis have made it difficult for central banks to adopt a more aggressive rate-cutting stance.
Dr Asiama stressed that the Bank of Ghana remains committed to maintaining price stability while supporting economic growth, but warned that policy decisions must remain cautious under current global conditions.
He added that if geopolitical tensions ease and global markets stabilise, there may be room for further reductions in the policy rate.
“If developments in the Middle East normalise, it could create room for further easing of the policy rate,” he stated.
The Bank of Ghana has maintained a tight monetary policy stance over recent years as part of broader efforts to curb inflation and stabilise the economy.
While recent macroeconomic gains—including improved inflation trends and exchange rate stability—had raised expectations of lower borrowing costs, the Governor’s remarks suggest that future rate cuts will depend largely on external global developments.
