Bank of Ghana maintains policy rate at 14% to curb inflation risks

The Bank of Ghana (BoG) has decided to maintain its monetary policy rate at 14% to consolidate recent gains in disinflation and safeguard economic stability. Governor Dr. Johnson Asiama, addressing Parliament on November 6, 2026, explained that the Monetary Policy Committee (MPC) has adopted a cautious stance to protect the economy from emerging external and domestic pressures. This decision marks a pause in the central bank's policy easing cycle as it monitors shifting global and local economic conditions.

A primary driver for the steady rate is the sharp rise in global crude oil prices, which have surpassed US$100 per barrel. Dr. Asiama warned that such high prices pose a significant risk to the nation’s inflation outlook and could undermine price stability. Although domestic inflation fell earlier in the year, it recently edged up to 5.5% in October 2026, compared to 5.2% in September. While this remains within the central bank's target range, the Governor emphasized that keeping the policy rate at 14% is necessary to avoid renewed price pressures and ensure a sustainable path toward lower inflation.

Despite these inflationary risks, the Governor reported robust performance in the broader economy during the first half of 2026. Ghana recorded a GDP growth rate of 6.4% and a significant trade surplus of US$8.81 billion. The banking sector has also demonstrated improved resilience, with private sector credit growing and lending rates beginning to decrease. Dr. Asiama noted that the MPC’s decision to hold the rate steady since May 2026 has provided the financial sector with the stability needed to support these positive macroeconomic developments.

Looking forward, the Bank of Ghana is focused on long-term structural improvements to the economy. The Governor outlined ongoing reforms to enhance the central bank’s operational frameworks and announced a strategic target to achieve 15 months of import cover by 2028. By maintaining a firm monetary policy stance now, the BoG aims to navigate current global energy market volatility while positioning the country for continued growth and financial transparency in the coming years.