The Monetary Policy Committee (MPC) of the Bank of Ghana has commenced its 129th meeting in Accra to assess current economic conditions and determine the country’s policy rate.
The three-day meeting, which began on March 16 and will end on March 18, will culminate in the announcement of the benchmark interest rate used by the central bank to influence borrowing costs, manage inflation and guide overall economic activity.
Opening the session, the Governor of the Bank of Ghana and Chairman of the MPC, Dr Johnson Pandit Asiama, said the Committee’s deliberations come at a time when the domestic economy is showing signs of recovery, even as global developments create new uncertainties.
He noted that inflation had declined significantly to 3.3 per cent in February, falling below the country’s medium-term target band of six to 10 per cent. According to him, the figure represents a major turnaround from the economic pressures Ghana faced roughly two years ago.
Dr Asiama also pointed to improvements in the country’s external reserves, which have increased to about US$14.5 billion—equivalent to 5.8 months of import cover—up from US$13.8 billion recorded during the previous MPC meeting in January.
He added that fiscal consolidation efforts had produced better-than-expected results, with Ghana recording a primary surplus of 2.6 per cent of Gross Domestic Product (GDP) at the end of 2025, compared with a deficit of 3.9 per cent the previous year.
The Governor further indicated that economic activity remained strong, with the composite index of economic activity expanding by 8.4 per cent year-on-year at the start of 2026.
Despite these positive indicators, Dr Asiama cautioned that developments in the global environment could present challenges to Ghana’s disinflation path.
He highlighted the escalation of conflict in the Middle East as a key concern, explaining that disruptions to energy and shipping routes had increased volatility in global oil markets.
According to him, sustained increases in oil prices could raise the risk of imported inflation and tighten global financial conditions.
At the same time, he noted that geopolitical tensions could push gold prices higher, potentially strengthening Ghana’s trade balance given the country’s strong gold export sector.
During the meeting, the MPC will examine several critical issues, including recent inflation trends, the potential impact of geopolitical risks, progress under the Ghana Accelerated National Reserve Accumulation Policy (GANRAP), and the effectiveness of the banking sector in transmitting monetary policy.
Dr Asiama also called on members to consider strategies that would support the country’s goal of increasing international reserves to cover 15 months of imports by 2028.
He added that although the banking sector remained stable, profitable and well capitalised, credit growth in the economy was still relatively weak.
The Committee is therefore expected to examine whether limited lending is driven by banks’ risk appetite and regulatory requirements or by low demand from borrowers.
Dr Asiama urged members to carefully weigh the improving domestic outlook against emerging global risks to ensure that policy decisions sustain the gains achieved through disciplined economic management.
