Bank of Ghana maintains policy rate at 14%

The Bank of Ghana has maintained the policy rate at 14.0 per cent following the 130th Monetary Policy Committee (MPC) meeting held on May 20, 2026.

The Central Bank said headline inflation rose marginally to 3.4 per cent in April 2026 from 3.2 per cent in March, marking the first increase since December 2024.

According to the MPC, global economic conditions since March 2026 have been affected by ongoing geopolitical tensions in the Middle East.

The International Monetary Fund has revised its 2026 global growth projection downward to 3.1 per cent from 3.3 per cent, while global inflation pressures are rising due to higher energy and food prices.

Domestically, the Bank said economic activity strengthened in the first quarter of 2026, with the Composite Index of Economic Activity expanding by 12.6 per cent year-on-year in March 2026, compared to 2.3 per cent in March 2025.

The Bank also reported that average lending rates declined to 16.3 per cent from 27.4 per cent, while private sector credit growth increased by 28.7 percent in nominal terms in April 2026, compared to 19.9 per cent in April 2025.

It further noted that banking sector performance improved significantly, with total assets rising by 26.6 per cent year-on-year to GH¢493.9 billion in April 2026, supported by deposits, domestic borrowings and shareholders’ funds.

The MPC said provisional fiscal data for January to March 2026 reflected expenditure containment measures amid revenue shortfalls.

Gross International Reserves increased to US$14.4 billion as of May 18, 2026, equivalent to 5.7 months of import cover, up from US$13.8 billion in December 2025.

The Bank also disclosed that the cedi depreciated by 8.4 per cent against the US dollar by May 15, 2026, mainly due to demand from the energy sector and dividend payments by some corporate entities.

Additionally, the Committee announced that the dynamic Cash Reserve Ratio would be amended to a uniform ratio of 20 per cent, maintained in domestic currency, effective June 4, 2026.

The next MPC meeting is scheduled for July 22, 2026.