The Monetary Policy Committee (MPC) of the Bank of Ghana has opted to maintain the benchmark interest rate at 29.5%, signaling a cautious stance despite signs of economic recovery. The decision follows the latest quarterly meeting chaired by Governor Dr. Ernest Addison, where economic indicators showed a mixed outlook.
Inflation, though reduced to 21.3% in June 2025—its lowest in over two years—remains a concern, especially with global oil prices surging again. Ghana’s cedi has strengthened against the dollar, driven by increased exports and the IMF’s recent $367 million disbursement. Yet, high debt servicing and persistent fiscal deficits temper optimism.
Dr. Addison noted in a press briefing: “We acknowledge the gains made in stabilizing inflation and the exchange rate, but caution is warranted. Premature easing may undermine the hard-won macroeconomic stability we are experiencing.”
Analysts had speculated a potential rate cut of up to 100 basis points, but the Bank’s conservative decision was praised by economists who feared a policy misstep might fuel inflation again. “It’s the right call,” said economist Priscilla Boakye of Databank. “Ghana has been here before—early celebration can reverse everything.”
The MPC’s decision comes amid a brighter economic backdrop. Ghana’s GDP grew by 5.3% in the first quarter of 2025, buoyed by agricultural and service sectors. Gold exports are projected to rise by 6.25% this year, and Fitch recently upgraded Ghana’s credit rating outlook to ‘stable.’
Still, risks loom large. Utility tariffs are expected to rise in Q3, and global geopolitical tensions continue to impact commodity prices. The upcoming fiscal budget will be crucial in determining whether monetary policy can afford to ease in Q4.
In the coming months, the central bank is expected to monitor key inflation drivers—including food prices and transport costs—before considering a rate cut. Stakeholders across banking, commerce, and industry are hopeful that a favorable policy environment will soon follow.
Ghana continues to receive technical assistance and funding from development partners, but all eyes remain on how it balances recovery with long-term debt sustainability.
Conclusion: With macroeconomic conditions showing early signs of stability, the Bank of Ghana is wisely prioritizing inflation control and fiscal discipline. The next MPC decision, scheduled for September 2025, may bring a different tone—provided current gains hold firm.
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