The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG), has maintained its base rate at 28%.
This is the first time the MPC, under the leadership of Governor Dr Johnson Pandit Asiama, would be maintaining the policy rate at 28%.
The maintenance of the policy rate follows a 100 basis points (1%) increment in the rate following the 123rd MPC meeting in March 2025.
The MPC said the maintenance of the base rate is to further anchor inflationary expectations on the back of the steady decline in the country’s headline inflation, which now stands at 21.2% at the end of April 2025.
Announcing the policy rate decision by the MPC at the 124th MPC press briefing, Dr Asiama said the MPC observes that the current level of inflation remains high relative to the medium-term target and will therefore require maintaining the tight monetary policy stance to reinforce the disinflation process.
“Under the circumstances, the Committee, by a unanimous decision, maintained the policy rate at 28%,” he stated.
Speaking further, the Governor noted that, on additional policy measures taken by the Committee, the Committee decided to amend the current Cash Reserve Ratio of banks.
“The CRR or the Dynamic Cash Reserve Ratio for all banks will now be maintained in their respective currencies. This means that foreign currency reserves for foreign currency deposits and the same way domestic currency reserves for domestic currency deposits. This policy measure will become effective on June 5,2025,” he added.
Given the maintenance of the policy rate, interest rates on loans to the private sector are expected to remain the same with no additional increment in the costs of production by businesses in the country.
