General News
Bank of Ghana Maintains Policy Rate at 14% as Inflation Hits 5.3% in June 2026
The Bank of Ghana (BoG) has maintained its Monetary Policy Rate at 14.0 percent following the conclusion of the 131st Monetary Policy Committee (MPC) meeting, citing rising inflation and growing external risks despite the country’s resilient economic performance.
The central bank noted that headline inflation increased to 5.3 percent in June 2026, up from 3.7 percent in May, driven by increases in both food and non-food prices.
On the global front, the MPC observed that easing geopolitical tensions proved short-lived as renewed conflict in the Middle East led to another closure of the Strait of Hormuz, pushing crude oil prices above US$85 per barrel. The Bank warned that higher energy prices and supply chain disruptions are expected to slow the pace of global disinflation.
Despite these external challenges, Ghana’s economy remained resilient. The country’s real Gross Domestic Product (GDP) grew by 6.4 percent in the first quarter of 2026, compared with 6.2 percent during the same period in 2025. Growth was mainly supported by the services and industry sectors.
The banking sector also recorded significant improvements. Average lending rates declined to 15.6 percent from 27.0 percent, contributing to a sharp increase in private sector credit growth to 41.2 percent in June 2026, compared with 8.6 percent a year earlier. The Bank said the financial sector remained strong, supported by robust asset growth, improved solvency, and better asset quality.
On the fiscal side, the Bank indicated that first-quarter performance reflected strong expenditure restraint despite revenue shortfalls, resulting in better-than-targeted fiscal balances. Meanwhile, the external sector posted a strong performance in the first half of 2026, supported by robust export earnings, although higher energy costs linked to the Middle East conflict increased the country’s import bill.
The Ghana cedi experienced demand pressures in May but has since recovered. However, as of 17 July 2026, the local currency had depreciated cumulatively by 9.5 percent against the US dollar.
The Bank of Ghana said it will continue to closely monitor inflationary pressures and global developments to safeguard macroeconomic stability. The next Monetary Policy Committee meeting is scheduled for 22–24 September 2026.