Bank of Ghana holds policy rate at 14% amid inflation risks

The Bank of Ghana’s seven-member Monetary Policy Committee (MPC) has unanimously decided to maintain the policy rate at 14 percent. The decision reflects a cautious stance driven by concerns over rising inflation and external economic risks.

Committee members highlighted several factors that could threaten the inflation outlook, including rising fuel and food prices, utility tariff adjustments, and increased shipping costs. There are also concerns regarding potential weather-related disruptions from El Niño, which could exacerbate imported inflation and place renewed pressure on the cedi and the external sector.

While the economy showed signs of strength—with a 6 percent expansion in the second quarter of 2026 and a rising Composite Index of Economic Activity—the committee opted to hold the rate to assess the persistence of recent price increases. Additionally, international reserves saw a decline from US$14 billion to US$12 billion by late September, amid significant payment obligations and anticipated external debt servicing.