Four out of six members of the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) voted in favour of a 300 basis points (3.0%) cut in the policy rate, according to the official minutes released by the Bank.
The decision, the minutes revealed, was influenced by growing concerns over inflationary risks from both global and domestic factors, including geopolitical tensions, global tariff wars, utility tariff adjustments, energy sector levies, and rising crude oil prices.
Despite these concerns, the majority of the committee members expressed optimism, stating that “they will continue to assess incoming data and likely reduce the policy rate further, should the disinflation trend continue,” while maintaining a strong commitment to the price stability mandate.
However, two members of the Committee dissented from the majority view. One member called for a deeper rate cut of 350 basis points, citing the persistent elevation of inflation above the medium-term target and the uncertainties in the global economy as the main concerns.
Another member pushed for a more cautious 250 basis points cut, also highlighting inflation risks as a key reason for their stance.
These dissenting positions underscore the differing perspectives within the Committee on the appropriate pace and extent of monetary easing in the current economic environment.
The Monetary Policy Committee, as established under the Bank of Ghana Act, comprises the Governor of the Bank, the First and Second Deputy Governors, the Head of Banking Operations, and two other members appointed by the Finance Minister, based on their relevant knowledge and experience.
The latest decision reflects the Committee’s ongoing balancing act between fostering economic growth and ensuring inflation remains within manageable limits.
