The Bank of Ghana (BoG) has maintained its policy rate at 28% following its latest Monetary Policy Committee (MPC) meeting, a move aimed at anchoring inflation expectations amid cautious optimism.
The announcement was made by Governor Dr. Johnson Asiama at a press briefing held at the Bank Square on Friday, May 23, 2025.
“Despite these positive developments, the committee observed that the current level of inflation remains high relative to the medium-term target and will require maintaining the policy rate at 28.0%,” he stated.
The central bank’s decision comes at a time when the cedi has shown relative stability and macroeconomic indicators have improved.
However, the BoG says potential inflation risks in the second half of the year warrant a continued tight policy posture.
While sections of the private sector and financial analysts had anticipated a marginal rate cut to support borrowing and business growth, the central bank insists that the inflation outlook remains uncertain.
“The latest forecast points to continued easing of inflationary pressures on the back of tight monetary policy stance, exchange rate stability, and fiscal consolidation,” Dr. Asiama explained.
He added that inflation is now projected to fall back within target by the first quarter of 2026, rather than the second quarter as previously estimated.
