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The Bank of Ghana (BoG) is weighing whether to maintain its 14% Monetary Policy Rate as rising inflation, higher global energy prices and pressure on foreign exchange reserves introduce fresh risks to the economy.
Opening the 132nd Monetary Policy Committee (MPC) meeting on Wednesday, September 23, 2026, Governor Dr Johnson Pandit Asiama said the Committee would assess whether recent economic developments warranted a change in the policy rate.
At its July meeting, the MPC unanimously kept the policy rate at 14%. However, Asiama said the economic environment had since changed, particularly following the prolonged conflict in the Middle East and its impact on global energy markets.
Brent crude oil has risen from above US$85 per barrel at the time of the previous MPC meeting to about US$107 per barrel. The increase has raised concerns over the potential impact of higher energy and fertiliser costs on Ghana’s economy.
Inflation has also moved higher, increasing from 3.2% in March to 5.0% in August.
“The level remains well below the lower bound of the target band, but the direction has been upward,” Asiama said.
He said the MPC would need to determine whether the recent increase represented a temporary adjustment driven by higher energy costs and administered tariffs or whether it could develop into more persistent inflationary pressure.
Ghana’s external position comes under scrutiny
The Governor also highlighted developments in Ghana’s external sector, saying gross international reserves had declined to US$11.07 billion, equivalent to 4.2 months of import cover.
He said the weaker current account position, slower gold shipments and the suspension of GoldBod’s gold exports since mid-August required close monitoring.
The developments are particularly significant ahead of the fourth quarter, when foreign exchange demand is typically expected to increase.
“Rebuilding net foreign assets must therefore remain the priority heading into the fourth quarter,” Asiama said.
The external risks could add another consideration for policymakers as the MPC evaluates the appropriate monetary policy stance.
Stronger domestic conditions provide counterbalance
Despite the renewed inflation and external-sector pressures, Asiama noted that domestic economic conditions had strengthened.
The economy recorded real GDP growth of 6.0% in the second quarter, while the fiscal position has improved and the banking sector remains sound and profitable.
The MPC will therefore have to weigh the renewed inflationary and external risks against stronger domestic economic conditions as it determines the appropriate policy direction.
Its decision will provide an indication of how the BoG intends to balance price stability, external reserve accumulation and economic growth amid changing domestic and global conditions.
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