BoG maintains Policy Rate at 27% amid inflationary pressures
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has maintained the benchmark interest rate at 27%, emphasizing the positive impact of a strengthening cedi on future price stability.
A statement by BoG Governor and MPC Chairman, Dr. Ernest Addison, highlighted the persistence of inflationary pressures, driven by volatile food prices, residual exchange rate pass-through effects, and adjustments in fuel and utility tariffs.
The statement noted that steep price increases in food items and earlier sharp currency depreciation had disrupted the inflation trajectory, stalling the disinflation process. This has resulted in a slightly elevated inflation outlook for the near term.
According to Dr Addison, at the time of the previous MPC meeting, the average inflation forecast a year ahead was 19%. However, the current forecast places it marginally higher at 20.1%. The timeline for inflation to return to the central bank’s target range of 6–10% has been adjusted from Q3 2025 to Q4 2025. Despite these challenges, the statement assured that the BoG remains committed to its monetary policy stance, aiming to stabilize inflation and foster a conducive environment for economic recover
