Bank of Ghana Headquarters

The Monetary Policy Committee (MPC) of the Bank of Ghana has opted to keep the policy rate unchanged at 28 percent, following its 124th scheduled meeting.

Announcing the decision at a press briefing in Accra on Friday, May 23, 2025, the Governor of the Central Bank, Dr Johnson Asiama, stated that the committee reached the decision unanimously after assessing recent economic developments.

He noted that while inflationary pressures have shown signs of easing, uncertainties in the global economy and risks to the domestic outlook warranted a cautious approach.

"The latest forecast from the Bank of Ghana points to a continued easing of inflationary pressures, supported by a tight monetary policy stance, exchange rate stability, and fiscal consolidation," he explained.

Dr Asiama added, "Inflation is now expected to decline more rapidly, reaching the medium-term target in the first quarter of 2026, rather than the second quarter as previously projected, barring any unanticipated shocks."

Despite the encouraging trend, the Governor emphasised the need to sustain the current policy direction.

"Despite these encouraging developments, the Monetary Policy Committee noted that inflation remains elevated relative to the medium-term target. As a result, it emphasised the need to maintain a tight policy stance in order to sustain the disinflation process."

He concluded, "Given these conditions, the Committee, by unanimous decision, voted to maintain the policy rate at 28.0 percent."

The policy rate, used by the Central Bank to influence lending rates and control inflation, remains a key instrument in safeguarding Ghana’s macroeconomic stability amid ongoing global and domestic challenges.

MA