The Bank of Ghana (BoG) has called an emergency Monetary Policy Committee (MPC) meeting slated for Thursday, July 17, 2025, in response to mounting pressure for a policy shift amid Ghana’s sharply declining inflation.
The announcement, made in an official notice on Tuesday, indicates that the MPC’s decision will be released on Friday, July 20, ahead of the central bank’s previously rescheduled regular meeting, now set for July 28–30.
The emergency session is being closely watched by the business community and financial markets, as the BoG’s benchmark policy rate remains at a relatively tight 28 percent, despite significant improvements in inflation. Ghana’s annual inflation has fallen from over 23 percent in December 2024 to 13.7 percent in June 2025, prompting calls for monetary easing to stimulate growth and reduce borrowing costs for businesses.
However, the MPC faces a delicate balancing act.
Although the domestic disinflation trend may justify a rate cut, recent guidance from the International Monetary Fund (IMF) adds a cautionary note. In its latest country report, the IMF urged the BoG to maintain a tightening bias to anchor inflation expectations, even while revising Ghana’s end-2025 inflation target down to 8 percent.
The move to call an emergency meeting also reflects a need to align monetary decisions with fiscal policy planning, as the Finance Ministry prepares to present its Mid-Year Budget Review around the same period.
Sources close to the MPC say the Committee remains divided. Some members advocate for a cut, citing falling inflation and the need to boost private sector credit growth. Others favour holding the rate, pointing to global financial uncertainty, external vulnerabilities, and potential risks to the cedi.
The outcome of Thursday’s meeting could signal a turning point in monetary policy direction, with implications for lending rates, investor sentiment, and the trajectory of Ghana’s post-crisis economic recovery.
