Bank of Ghana Holds Policy Rate at 14.0% Amid Rising Inflation, Global Oil Shock

The Bank of Ghana has maintained its Monetary Policy Rate at 14.0 per cent, as headline inflation climbed and renewed Middle East tensions pushed oil prices above US$85 per barrel.

Governor Johnson Asiamah announced the unanimous decision on Wednesday, July 22, 2026, after the MPC’s 131st meeting.

The Committee said the current stance remains appropriate to guide inflation into the 8±2 per cent medium-term target band while it assesses evolving geopolitical risks.

Headline inflation rose to 5.3 per cent in June 2026 from 3.7 per cent in May, driven by higher food and non-food prices and a temporary jump in transport fares following the oil price surge. Despite the uptick, inflation remains below the lower bound of the target band.

On the growth front, the economy remained resilient. Real GDP expanded by 6.4 per cent in Q1 2026, up from 6.2 per cent a year earlier, supported by services and industry. The Bank’s economic activity index also showed strong growth of 13.4 per cent in May.

Credit conditions eased with average lending rates falling to 15.6 per cent from 27.0 per cent a year ago, helping drive private sector credit growth to 41.2 per cent in June 2026.

The external sector also performed strongly as trade surplus widened to US$8.8 billion in the first half of 2026 from US$5.8 billion a year earlier, on the back of higher gold and cocoa earnings.

Gross International Reserves stood at US$12.9 billion, equivalent to 5.0 months of import cover, down from US$13.8 billion in December due to higher energy payments.

The MPC flagged upside risks from potential utility tariff adjustments and further escalation of the Middle East conflict, but noted that fiscal consolidation and a tight monetary stance should help moderate inflation pressures going forward.

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