Accra, March 16, 2026 – The Monetary Policy Committee (MPC) of the Bank of Ghana has commenced its 129th meeting to evaluate the benchmark policy rate against a backdrop of declining inflation and heightened international economic volatility.
The three-day session, running from March 16 to March 18, will culminate in the announcement of the policy rate, a key tool used by the central bank to influence borrowing costs, guide economic activity, and manage inflation.
Dr Johnson Pandit Asiama, MPC Chairman and Governor of the Bank of Ghana, opened the meeting in Accra, highlighting the complexity of the policy decision despite improvements in domestic economic indicators.
He noted that the environment differed significantly from the cautious approach adopted during the January MPC meeting, stating that the current deliberations were “not meant to ratify good news, but to make judgments under conditions that are both encouraging and uncertain.”
According to Dr Asiama, inflation fell to 3.3 per cent in February, well below the medium-term target band of 6–10 per cent, marking a significant turnaround from crisis levels experienced about two years ago.
He added that international reserves rose to US$14.5 billion, equivalent to 5.8 months of import cover, up from US$13.8 billion in January, providing Ghana with greater resilience against potential external shocks.
The Governor also cited fiscal consolidation, noting that Ghana recorded a primary surplus of 2.6 per cent of GDP at the end of 2025, compared with a 3.9 per cent deficit a year earlier. Meanwhile, real sector activity remained robust, with the composite index of economic activity growing 8.4 per cent year-on-year at the start of 2026.
Despite these positive trends, Dr Asiama cautioned that external risks had intensified, particularly the escalation of conflict in the Middle East, which has disrupted energy and shipping corridors and increased oil market volatility.
He warned that higher global oil prices could stoke imported inflation and tighten financial conditions, though they might also support gold prices, benefiting Ghana’s trade balance as a gold exporter.
During deliberations, the MPC will focus on four key areas: inflation developments, geopolitical risk channels, the Ghana Accelerated National Reserve Accumulation Policy (GANRAP), and the role of the banking sector in transmitting monetary policy.
Dr Asiama urged members to assess whether the current policy stance remains appropriate given the evolving macroeconomic landscape and whether low inflation allows for policy accommodation.
He also emphasised the importance of strategies aimed at raising international reserves to 15 months of import cover by 2028, under GANRAP. On the banking sector, the Governor noted it remained sound, profitable, and well-capitalised, though credit growth was subdued, and the Committee would need to determine if this was due to supply constraints or weak borrower demand.
Reflecting on the January meeting, Dr Asiama remarked, “Then, the main risk was complacency in the face of success. Today, the challenge is managing progress amid external threats,” urging disciplined decision-making to sustain gains achieved through prudent policy measures.
GHBUSS
16 March 2026
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