Governor Johnson Asiama and Bank of Ghana Hold Policy Rate at 14% Amid 9.5% Cedi Depreciation

The Bank of Ghana’s Monetary Policy Committee (MPC) has decided to maintain the benchmark monetary policy rate at 14% for the third consecutive time. During the 132nd MPC meeting held in September 2026, Governor Dr. Johnson Asiama cited balanced risks to inflation and economic growth as the primary justification for the hold. While headline inflation saw a modest increase to 5% in August, primarily driven by non-food factors such as utility tariff adjustments and rising crude oil prices, core inflation measures have shown a moderating trend. The central bank highlighted the resilience of the domestic economy, noting a real GDP growth of 6% in the second quarter of 2026 and a significant rebound in private sector credit.

Despite the stable interest rate environment, the Ghana cedi has faced renewed pressure, depreciating by 9.5% against the U.S. dollar during the first nine months of 2026. The currency, which ended 2025 at GH¢10.45 to the dollar, was trading at approximately GH¢11.55 by late September. The cedi also recorded year-to-date declines against the British pound (9.0%) and the Euro (7.3%). According to the central bank, this depreciation is largely fueled by increased foreign-exchange demand from the energy sector and substantial dividend payments by private corporations. In response, the Bank of Ghana has introduced a new Foreign Exchange Operations Framework to manage market volatility while maintaining a flexible, market-determined exchange-rate regime.

On the external front, Ghana's trade position remains a point of strength, with the trade surplus widening to $8.85 billion for the first eight months of 2026, up from $6.69 billion during the same period in 2025. This improvement was driven by robust export receipts from gold, cocoa, and crude oil, which managed to offset a significant rise in the value of oil and gas imports. Dr. Asiama clarified that the central bank’s interventions in the foreign exchange market remain strictly rules-based rather than discretionary, focusing on building adequate reserves as a primary objective. As the country navigates global economic uncertainties and Middle East geopolitical pressures, the MPC will reconvene in November to evaluate the impact of these interventions on inflation targeting and macroeconomic stability.