Bank of Ghana maintains policy rate at 14% as global tensions cloud outlook

The Bank of Ghana (BoG) held its Monetary Policy Rate (MPR) at 14% following the 130th Monetary Policy Committee (MPC) meeting held May 18–20, 2026. Governor Dr. Johnson Pandit Asiama stated that ongoing geopolitical tensions in the Middle East—disrupting trade, energy prices, and global growth—posed risks to Ghana’s economy through financial and trade channels. The International Monetary Fund (IMF) had already downgraded its 2026 global growth forecast to 3.1% from 3.3%, warning further declines could occur if the conflict persisted. Domestically, Ghana’s Composite Index of Economic Activity grew 2.6% year-on-year in March 2026, up from 2.3% in March 2025, reflecting improved private sector credit, consumption, and trade. Headline inflation edged up to 3.4% in April 2026, the first rise since December 2024, driven by non-food inflation. Fiscal data showed a surplus of 0.1% of GDP in Q1 2026, exceeding the targeted deficit of 1.2%, while gross international reserves rose to $14.4 billion (5.7 months of import cover) as of May 18, 2026. The MPC assessed inflation and growth risks as balanced but warned of upward pressure from exchange rates, fuel costs, and transport fares. Dr. Asiama emphasized that the committee would monitor geopolitical spillovers and adjust policy as needed, though no immediate rate changes were made.