IMF recommends tight policy as Ghana’s inflation falls to 13.7%

The International Monetary Fund (IMF) has advised the Bank of Ghana (BoG) to maintain its tight monetary policy stance to solidify recent gains in reducing inflation, despite calls for interest rate cuts from sections of the business community.

Speaking during a press briefing in Washington, IMF Communications Director Julie Kozack acknowledged Ghana’s progress, with inflation dropping sharply from a peak of 54% in late 2022 to 13.7% by June 2025.

“Going forward, it will be important for monetary policy to remain sufficiently tight, consistent with bringing inflation down to the Bank of Ghana’s target range of 8 percent, plus or minus 2 percentage points,” Kozack noted.

Ghana’s disinflation trend has held steady for six straight months, with headline inflation easing from 23.8% in December 2024 to 13.7% in June 2025. However, the central bank’s policy rate remains unchanged at 28%, prompting debate among economists and industry players seeking rate cuts to stimulate economic growth.

The IMF’s comments come as the Bank of Ghana begins its 125th Monetary Policy Committee (MPC) meeting today, July 28. The three-day session will evaluate key macroeconomic indicators including inflation, exchange rate dynamics, and financial sector stability.

Ghana is currently under a $3 billion IMF-supported Extended Credit Facility (ECF) programme, aimed at restoring macroeconomic stability, improving debt sustainability, and fostering inclusive growth.

“Ghana has made good progress since the beginning of the program in reducing inflation,” Kozack reiterated. “The gains must now be protected.”