The Bank of Ghana has maintained its Monetary Policy Rate at 14%, citing growing external economic uncertainties and renewed inflationary pressures despite signs of continued recovery within Ghana’s domestic economy.
The decision was announced after the conclusion of the central bank’s 130th Monetary Policy Committee (MPC) meeting held in Accra on Wednesday, May 20, 2026.
According to Governor Johnson Asiama, the MPC considered recent macroeconomic improvements but decided to keep the benchmark interest rate unchanged to protect gains made in stabilising the economy.
The policy rate influences borrowing costs across the economy and serves as the benchmark for commercial bank lending rates, business financing, and inflation control measures.
The central bank noted that inflationary pressures remain a concern globally, especially due to geopolitical tensions and disruptions in international trade routes, including the ongoing instability around the Strait of Hormuz, which has triggered increases in crude oil prices.
Governor Asiama warned that rising global inflation could force major central banks to tighten monetary policy again, potentially affecting capital flows into emerging economies such as Ghana.
The Bank of Ghana also referenced the International Monetary Fund’s revised global growth forecast for 2026, which was lowered from 3.3% to 3.1%, reflecting increasing concerns about the global economic outlook.
Despite those risks, the MPC said Ghana’s domestic economy showed stronger resilience during the first quarter of 2026. The Bank’s Composite Index of Economic Activity reportedly expanded by 12.6% year-on-year in March 2026 compared to 2.3% during the same period in 2025.
Recent economic data released by the central bank also showed improvements in fiscal performance. Ghana’s fiscal deficit-to-GDP ratio stood at 0.3% in March 2026, while the primary balance recorded a surplus of 1.2% of GDP.
However, pressure on the Ghana cedi remains a concern. Bank of Ghana figures indicate the local currency depreciated by 8.4% against the US dollar within the first five months of 2026, exceeding the 6.6% depreciation recorded over the same period in 2025.
The MPC also announced an additional policy measure involving the dynamic cash reserve ratio. Effective June 4, 2026, banks will be required to maintain a uniform reserve ratio of 20% in domestic currency.
Financial analysts had widely predicted the decision to maintain the policy rate at 14%, arguing that global economic uncertainty and inflation risks reduced the likelihood of either a rate hike or further cuts at this stage.
The Bank of Ghana stated that it would continue monitoring both domestic and international developments closely and adjust policy measures when necessary to maintain price stability and support economic recovery.