Dr. Johnson Asiama
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has maintained the monetary policy rate at 14% citing stable domestic economic conditions and growing uncertainty in the global economy especially the renewed conflict in the Middle East and its potential impact on inflation.
The Governor, Dr. Johnson Asiama, who announced this at a press briefing after the 131st Monetray Policy Committee Meeting (MPC), said the committee agreed to keep the policy rate the same as the current monetary policy stance.
“Given these considerations, the committee, by a unanimous decision, maintained the monetary policy rate at 14.0 percent,” he said.
“The committee judged that the current policy stance remains appropriate to guide inflation into the medium-term target band while allowing time to assess the evolving geopolitical developments and their potential impact on the domestic economy,” he added.
Dr. Asiamah explained that although geopolitical tensions briefly eased in mid-June, the renewed escalation of the Middle East conflict has disrupted global energy markets following the closure of the Strait of Hormuz.
“Crude oil prices have rebounded above 85 dollars per barrel following the renewed conflict. Together with supply chain disruptions, this is expected to further slow the pace of disinflation across several countries,” he stated.
According to the Governor, the renewed inflationary pressures have prompted many central banks to pause their monetary policy easing cycles, while heightened uncertainty could tighten global financing conditions, with implications for emerging economies such as Ghana.
On the domestic front, the Governor mentioned that Ghana’s economy remained resilient during the first quarter of 2026, recording real GDP growth of 6.4 percent, driven largely by the services and industrial sectors.
He added that the Bank’s Composite Index of Economic Activity (CIEA) also pointed to sustained improvements in economic performance.
Dr. Asiamah highlighted that there was improvements in monetary conditions adding that reserve money and broad money supply recorded significant growth, while government Treasury bill rates, the Ghana Reference Rate and average commercial bank lending rates all declined.
On the external sector, the committee said the economy continued to post strong performance, underpinned by robust export earnings from gold and cocoa despite a sharp increase in the import bill due to higher energy costs.
He noted that the country’s current account surplus widened while gross international reserves stood at 12.9 billion dollars at the end of June 2026, equivalent to five months of import cover.
The Policy Committee added that despite a decline in reserves resulting from increased energy-related payments, Dr. Asiamah said the country’s reserve position remains adequate to support the economy against external shocks.
By Ebenezer K. Amponsah