The Bank of Ghana’s Monetary Policy Committee (MPC) has maintained the Monetary Policy Rate at 14 percent, citing growing external risks, rising fuel costs and pressure on the country’s foreign exchange buffers.
The unanimous decision was taken at the MPC’s 132nd meeting held from September 23 to 24, 2026, with members indicating that the recent rise in inflation and uncertainty in the global economy warranted a cautious approach to monetary policy.
The decision comes despite continued strength in domestic economic activity. Ghana’s economy grew by 6 percent in the second quarter of 2026, while the Composite Index of Economic Activity expanded by 14.9 percent year-on-year in July, reflecting strong activity across key sectors.
However, the MPC noted that headline inflation had increased from 4.6 percent in July to 5 percent in August, driven largely by non-food inflation. Members identified higher petroleum prices, utility tariff adjustments, transport costs and disruptions to global supply chains as key risks to the inflation outlook.
The external position also featured prominently in the committee’s deliberations. Gross international reserves stood at US$12 billion as of September 22, equivalent to 4.5 months of import cover, down from US$13.8 billion at the end of December 2025. One MPC member said the drawdown reflected elevated external payment obligations and warned that the completion of Ghana’s debt restructuring could increase external debt-service requirements in the period ahead.
Members also raised concerns about developments in the global economy, particularly higher crude oil prices, rising food and shipping costs and tighter international financial conditions. A possible El Niño weather event was identified as an additional risk because of its potential impact on food prices and agricultural output.
The committee noted that a stronger US dollar following higher US interest rates could also place pressure on the cedi, potentially increasing the cost of imports and feeding into domestic inflation.
Despite these risks, the MPC observed that Ghana’s underlying inflation dynamics remained relatively contained. Inflation expectations across consumers, businesses and financial institutions had eased, while core inflation measures had also moderated.
The Bank also reported stronger private-sector credit growth, with credit expanding by 35.5 percent year-on-year in August 2026, while the average bank lending rate declined to 15.9 percent from 24.2 percent a year earlier.
The MPC therefore considered the risks to inflation and growth to be broadly balanced and opted to keep the policy rate unchanged, allowing it to monitor whether the recent increase in prices would persist and how global developments would affect Ghana’s inflation and exchange-rate outlook.
The 14 percent rate has now been maintained at three consecutive MPC meetings in March, May, July and September, following the 150-basis-point reduction in March 2026.
