Bank of Ghana holds policy rate at 28% to curb inflation

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has decided to keep the benchmark policy rate steady at 28%, aiming to sustain the ongoing decline in inflation.

Governor Dr. Johnson Pandit Asiama announced the decision at a press briefing on May 23, 2025. He explained that although macroeconomic conditions are improving, inflation remains too high.

Ghana’s inflation rate currently stands at 21.2%. The central bank expects it to drop faster than earlier projected, possibly reaching the target range by early 2026.

Dr. Asiama noted improvements in exchange rate stability and fiscal discipline. These, combined with the tight monetary stance, are helping reduce inflation.

However, he stressed that more progress is needed. “We must maintain the policy rate to reinforce disinflation and anchor expectations,” he said.

The MPC’s decision aims to keep borrowing costs stable and avoid further pressure on business operations.