By Francis Ntow
Accra, Sept 25, GNA – The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has kept its benchmark monetary policy rate unchanged at 14 per cent, marking the third straight time it has held the rate steady this year.
The unanimous decision was made by the Committee at the press briefing at the end of the 132nd meeting, in Accra, on the back of heightened global uncertainty and uptick in headline inflation despite continued improvements in Ghana’s macroeconomy.
“Based on these considerations, the monetary policy committee viewed the balance of risks to inflation and growth as broadly balanced, and the Committee voted by a unanimous decision to maintain the mandatory policy rate at 14 per cent,” Dr Johnson Asiama, the Governor of the Central Bank, said.
On economic developments, the Governor noted that the global activity remained resilient in the first half of 2026, supported mainly by strong investment in Artificial Intelligence (AI) and a less severe impact of energy shocks than earlier anticipated.
He said the International Monetary Fund (IMF) global growth projection for 2026 had remained largely unchanged at three per cent, although the tendency for geopolitical tensions to reignite could weaken prospects in the medium term.
Governor Asiama said global inflationary pressures had heightened since July 2026, driven by elevated crude oil prices currently hovering above US$100 per barrel, with additional uncertainty from expected El Niño conditions in the last quarter and global supply chain constraints.
He said most central banks had since shifted from caution to modest tightening, with the US Federal Reserve, European Central Bank, and Bank of Japan, all raising rates on persistent inflation, tightening financing for emerging economies like Ghana.
On the domestic front, Dr Asiama said growth remained strong, with real Gross Domestic Product (GDP) expanded by six per cent in the second quarter of 2026, driven by services and industry, though lower than the 6.6 per cent recorded in the same period in 2025.
On prices, headline inflation increased to five per cent in August 2026 from 4.6 per cent in July, driven by non-food inflation, which rose to 6.8 per cent from 6.1 per cent due to pass-through effects from utility tariff adjustments and high crude oil prices, while food inflation remained low at 3.0 per cent.
Monetary developments showed reserve money grew strongly by 29.7 per cent year-on-year in August compared to 4.5 per cent last year, reflecting policy changes on reserve requirements, while broad money supply grew by 20.4 per cent.
Interest rates moderated, with the 91-day Treasury bill rate falling to 5.4 per cent from 10.3 per cent a year earlier and average lending rates declining to 15.9 per cent from 24.2 per cent.
“This low interest rate environment, coupled with eased credit conditions, pushed private sector credit growth to rebound to 35.5 per cent in August from 13.3 per cent last year, translating to 29.0 per cent growth in real terms,” Dr Asiama said.
The Central Bank Governor stated that provisional data for the first seven months of 2026 showed improved revenue mobilisation, with an overall deficit on commitment basis of GHS3.5 billion, representing 0.2 per cent of GDP, against a target of 1.9 percent.
The country’s primary balance recorded a surplus of 1.4 per cent of GDP against a target of 0.2 per cent, while public debt stood at 45.9 per cent of GDP at end-July compared to 44.7 per cent in December 2025.
The Governor also noted that the banking sector, remained solvent, profitable and liquid, with total assets up 20.5 per cent to GHS500.2 billion, capital adequacy improving to 19.1 per cent from 18.3 per cent, and non-performing loans declining to 15.7 per cent from 20.8 per cent, though credit risk remained elevated.
On the external sector, the trade surplus improved to US$8.85 billion by August 2026 from US$6.69 billion last year, supported by strong gold, cocoa and crude oil exports totalling US$22.4 billion, while imports rose to US$13.58 billion due to oil and gas purchases.
Gross international reserves stood at US$12 billion, equivalent to 4.5 months of import cover as of September 22.
Going forward, Governor Asiama said the Committee would continue to monitor both global and domestic developments and take appropriate decisions to ensure stable prices and support sustainable economic growth.
GNA
Edited by Agnes Boye-Doe
Reporter: Francis Ntow