The Bank of Ghana (BoG) has kept its policy rate unchanged at 14%, as policymakers weighed mounting inflationary risks stemming from rising global oil prices and escalating tensions in the Middle East against Ghana’s improving economic performance.
The decision was reached unanimously by the Middle Eastduring its 131st regular meeting held from July 20 to 22, 2026.
Speaking at a press conference in Accra, BoG Governor Dr Johnson Pandit Asiama said the committee believes the current policy stance strikes the right balance between supporting economic growth and keeping inflation on track toward the bank’s medium-term target.
“The committee judged that the current policy stance remains appropriate to guide inflation into the medium-term target band while allowing time to assess the evolving geopolitical developments and their potential impact on the domestic economy,” he stated.
Dr Asiama warned that rising utility tariffs and the surge in crude oil prices following renewed conflict in the Middle East could place fresh upward pressure on inflation.
Global oil prices have climbed above US$85 per barrel after the escalation of hostilities and disruptions to shipping through the Strait of Hormuz, raising concerns about higher import costs and slower global disinflation.
Despite these external headwinds, Ghana’s economy continued to demonstrate resilience.
According to the MPC, the economy expanded by 6.4% in the first quarter of 2026, slightly higher than the 6.2% growth recorded during the same period in 2025. Economic activity also strengthened significantly, with the Bank’s Composite Index of Economic Activity growing by 13.4% in May 2026, compared with 4.4% a year earlier.
The strong performance was driven by increased industrial output, stronger international trade, higher tourist arrivals and a sharp expansion in private sector lending.
Private sector credit rose by 41.2% in June 2026, compared to 8.6% in the same month last year, while lending rates declined sharply from 27% to 15.6%, making credit more accessible to businesses.
Ghana’s external sector also remained robust during the first half of the year.
The country recorded a trade surplus of US$8.8 billion, up from US$5.8 billion during the same period in 2025, while the current account surplus improved to US$5.1 billion from US$4.1 billion, largely supported by strong gold and cocoa exports.
However, the bank reported that gross international reserves declined to US$12.9 billion by the end of June, equivalent to five months of import cover, down from US$13.8 billion at the close of 2025. The reduction was mainly linked to increased energy-related import payments arising from the Middle East crisis.
The cedi also experienced some volatility during the year, depreciating by 9.5% against the US dollar as of July 17, although the currency has since shown signs of stabilising.
The MPC expressed optimism that ongoing fiscal consolidation and prudent monetary policy would help contain inflationary pressures while preserving macroeconomic stability.
The Bank of Ghana is expected to review the policy rate again at its next MPC meeting, scheduled for September 22 to 24, 2026, with the outcome to be announced on September 24.
