The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has maintained the Monetary Policy Rate (MPR) at 14 per cent.
The Governor of the BoG and Chairman of the MPC, Dr. Johnson Pandit Asiama, announced after the MPC’s 131st meeting in Accra on Wednesday that the members resolved to retain the MPR at 14 per cent due to renewed global uncertainties and potential inflationary pressures from rising fuel and utility prices.
He explained that the decision, taken unanimously at the Committee reflected a cautious stance aimed at preserving price stability while supporting economic growth.
The Governor said that the current policy rate remained appropriate to guide inflation towards the Bank’s medium-term target band, while allowing room to assess evolving global risks.
According to him, the escalating tensions in the Middle East has disrupted energy markets, pushing crude oil prices above $85 per barrel and intensifying global inflationary pressures.
“These developments present upside risks to the inflation outlook, particularly through higher fuel and utility prices, and could tighten global financing conditions with implications for emerging economies such as Ghana,” the report by the Ghanaian Times on Thursday quoted the Governor of the BoG as saying.
On the domestic front, Dr Asiama indicated that the economy remained resilient, with real Gross Domestic Product (GDP) growth reaching 6.4 per cent in the first quarter of 2026, driven mainly by the services and industrial sectors.
He said that the Bank’s Composite Index of Economic Activity recorded strong annual growth of 13.4 per cent in May 2026, supported by increased private sector credit, higher industrial output, improved trade performance and a rise in tourist arrivals.
On Headline inflation, he explained that it rose to 5.3 per cent in June from 3.7 per cent in May, largely due to base effects and temporary increases in transport fares following higher global crude oil prices.
GIK/APA