Bank of Ghana Holds Policy Rate at 14% Again as Middle East Tensions Cloud Inflation Outlook
The Bank of Ghana (BoG) has maintained its Monetary Policy Rate (MPR) at 14.0 per cent for the second consecutive meeting, citing heightened global uncertainties, particularly the renewed conflict in the Middle East, and the need to keep inflation within its medium-term target while supporting economic growth.
Announcing the decision at the conclusion of the 131st Monetary Policy Committee (MPC) meeting on Wednesday, July 22, 2026, Governor Dr. Johnson Pandit Asiama said the Committee unanimously agreed to keep the benchmark interest rate unchanged after assessing both domestic and external economic developments.
According to the Governor, renewed geopolitical tensions in the Middle East and the resulting disruptions to global trade routes have increased volatility in energy markets, creating fresh inflationary risks for economies worldwide.
He explained that the surge in energy prices has slowed disinflation in several countries, prompting many central banks to pause their monetary policy easing cycles. The MPC believes these external developments could tighten global financing conditions and negatively affect emerging and developing economies through trade and financial channels.
Despite these external risks, the Committee observed that Ghana’s domestic economy continues to strengthen.
Dr. Asiama pointed to robust first-quarter GDP growth, improved Composite Index of Economic Activity (CIEA) outcomes, stronger business and consumer confidence, an easing credit environment and significant growth in private sector credit as indicators of sustained economic recovery.
He added that continued improvements in the country’s trade balance and adequate international reserve buffers have strengthened Ghana’s ability to withstand external shocks.
On inflation, the Governor noted that headline inflation has moved closer to the lower bound of the Bank’s medium-term target band, largely due to favourable base effects. While inflation expectations and core inflation have increased slightly, they remain broadly within the target range.
The MPC’s latest forecast remains largely unchanged from its previous assessment, with headline inflation expected to rise gradually within the target band over the medium term.
However, the Committee identified potential upward risks to the inflation outlook, including possible increases in utility tariffs and the impact of escalating geopolitical tensions on global crude oil prices.
On the other hand, the Bank expects continued fiscal consolidation and an appropriately calibrated monetary policy stance to help contain inflationary pressures.
Given these considerations, the MPC concluded that maintaining the policy rate at 14.0 per cent remains the most appropriate course of action.
“The current policy stance remains appropriate to guide inflation into the medium-term target band while allowing time to assess evolving geopolitical developments and their potential impact on the domestic economy,” Dr. Asiama stated.
