The Monetary Policy Committee (MPC) of the Bank of Ghana has maintained the policy rate at 27%, citing inflationary pressures and economic conditions.
Following its final meeting for the year on November 29, the Bank of Ghana explained that the timeline for inflation to return to the target band of 6-10% has been extended from the third quarter to the fourth quarter of 2025.
“The strengthening of the currency in the near term is expected to support improved price stability. Under these circumstances, the Monetary Policy Committee decided to keep the policy rate unchanged at 27%,” the statement noted.
The MPC highlighted that inflation remained elevated, driven by volatile food prices, earlier exchange rate pressures, fuel costs, and utility tariff hikes.
These factors have disrupted the disinflation process, with steep food price increases and earlier currency depreciation further exacerbating the situation.
At the time of the previous MPC meeting, the average inflation forecast for the next year was 19.0%. However, this has now risen slightly to 20.1%, reflecting a more challenging inflation outlook.