The Bank of Ghana's Monetary Policy Committee has voted unanimously to leave the Monetary Policy Rate unchanged at 14.0 percent, marking the second consecutive review at which the rate has been held steady. This decision was announced by Governor Dr Johnson Pandit Asiama at the 132nd MPC press conference. The committee viewed the balance of risks to both inflation and growth as "broadly balanced," which underpinned the unanimous vote to keep the rate steady.
Ghana's economy grew by 6 percent in real Gross Domestic Product terms in the second quarter of 2026, slightly down from 6.6 percent in the same period of 2025. The growth was driven by services and industry. The Composite Index of Economic Activity, a broader gauge of business activity, jumped 14.9 percent year-on-year in July, well above the 6.1 percent recorded a year earlier.
Inflation ticked up to 5 percent in August from 4.6 percent in July, attributed largely to higher non-food prices following utility tariff adjustments and elevated crude oil costs. However, headline inflation remains below the lower end of the Bank's medium-term target band of 8 percent, plus or minus two percentage points. Core inflation, which strips out volatile items such as fuel and utilities, eased slightly to 4.2 percent from 4.3 percent the previous month.
Borrowing costs elsewhere in the economy have continued to soften. The 91-day Treasury bill rate fell to 5.4 percent in August from 10.3 percent a year earlier, while the average commercial bank lending rate dropped to 15.9 percent from 24.2 percent. Private sector credit growth rebounded sharply to 35.5 percent, up from 13.3 percent in August 2025.
Ghana's trade surplus widened to $8.85 billion in the first eight months of 2026, compared with $6.69 billion over the same period last year. Gross international reserves stood at $12 billion as of September 22, 2026, equivalent to 4.5 months of import cover. This suggests that the country's foreign exchange position remains stable.
The rate decision comes shortly after Dr Asiama confirmed a rebound in gold shipments following an August slowdown. The central bank is navigating what officials have described as one of the toughest quarters for foreign exchange demand. Dr Asiama has also defended the Bank's independence from political interference, rebutting questions about his resignation from the GoldBod board.
Holding the MPR steady means businesses and mortgage holders are unlikely to see an immediate change in borrowing costs, even as lending rates across the banking sector have already been trending down over the past year. The committee will keep a close watch on global energy prices, exchange rate movements, utility tariffs, and supply chain disruptions in the months ahead.
Key points
- The Bank of Ghana has kept its key lending rate unchanged at 14.0 percent for the second consecutive review.
- Ghana's economy grew by 6 percent in real Gross Domestic Product terms in the second quarter of 2026.
- Inflation remains below the lower end of the Bank's medium-term target band of 8 percent, plus or minus two percentage points.
