The Bank of Ghana has maintained its Monetary Policy Rate (MPR) at 14.0 percent, citing rising geopolitical tensions in the Middle East and their potential impact on inflation, despite continued resilience in Ghana’s economy.
Announcing the decision after the 131st Monetary Policy Committee (MPC) meeting, the central bank said renewed conflict in the Middle East has pushed crude oil prices above US$85 per barrel, disrupted global supply chains, and increased inflationary risks worldwide. However, the Committee judged that the current policy stance remains appropriate to guide inflation into the medium-term target band.
Domestically, Ghana’s economy remained strong, with real GDP growth of 6.4 percent in the first quarter of 2026, up from 6.2 percent a year earlier. The Bank’s Composite Index of Economic Activity also recorded robust growth, supported by stronger private sector credit, industrial production, trade, and tourism.
Headline inflation rose to 5.3 percent in June from 3.7 percent in May, driven mainly by higher transport fares linked to rising oil prices and base effects. Despite the increase, inflation remains below the Bank’s target band of 8±2 percent.
Financial conditions continued to improve, with Treasury bill yields, the Ghana Reference Rate, and commercial lending rates all declining. Lower borrowing costs helped boost private sector credit growth to 41.2 percent year-on-year.
The banking sector also strengthened, with total assets rising 30.7 percent, improved capital adequacy, and a decline in non-performing loans.
Meanwhile, Ghana’s external sector posted strong results. The trade surplus widened to US$8.8 billion, while the current account surplus increased to US$5.1 billion, supported by higher gold and cocoa exports. Gross international reserves stood at US$12.9 billion, providing five months of import cover, although the cedi had depreciated 9.5 percent against the US dollar as of July 17.
The MPC said it will continue monitoring global developments, noting that sustained fiscal discipline and prudent monetary policy will be crucial to maintaining price stability and supporting economic growth.
