The Bank of Ghana (BoG) has maintained its Monetary Policy Rate at 14%, choosing to prioritise caution over a rate cut despite strengthening domestic economic conditions.
Central Bank Governor Dr Johnson Asiama announced the decision on Wednesday following the conclusion of the Monetary Policy Committee’s (MPC) 130th meeting.
He cited persistent external uncertainties and potential inflation risks as the primary reasons for holding the rate steady.
While the committee viewed the risks to inflation and economic growth as “broadly balanced,” Dr Asiama emphasised that the central bank will closely monitor global developments, particularly ongoing geopolitical tensions and their potential spillover into the domestic economy.
Easing Pressures and a New Reserve Requirement
Despite the cautious hold, the MPC highlighted several positive domestic indicators, including easing inflation, a stabilising exchange rate, and improved fiscal performance.
To further manage liquidity within the banking sector, the committee announced a new regulatory measure: a uniform, dynamic cash reserve ratio of 20% on domestic currency, which will take effect on June 4, 2026.
Strong Domestic Growth Against Global Headwinds
The decision comes at a time of robust domestic recovery. According to BoG data, Ghana’s Composite Index of Economic Activity (CIEA) surged by 12.6% in March 2026, a massive leap from the 2.3% growth recorded during the same period last year.
This economic acceleration was primarily driven by stronger private sector credit expansion, rising consumer spending, and increased industrial production and trade volume.
However, the central bank warned that global headwinds could still derail Ghana’s economic momentum.
Dr Asiama pointed to the International Monetary Fund’s (IMF) recently revised 2026 global growth forecast, which was downgraded to 3.1% from an initial projection of 3.3%, as a key indicator of the slowing external environment.