The Monetary Policy Committee of the Bank of Ghana (BoG) will today begin its 124th meeting to review recent macroeconomic developments and assess the country’s economic outlook.
This meeting is significant as it comes on the back of recent gains by the Ghana Cedi against the US dollar and ongoing efforts to tame inflation.
At its last meeting, the MPC increased the monetary policy rate by 100 basis points to 28 percent.
According to the Governor of the Bank of Ghana, Dr. Johnson Asiama, the move was necessary to “re-anchor the inflation-moderating process,” and ensure that inflation continues on a downward path.
Already, some market watchers expect the BoG to maintain the policy rate at 28%, with any potential cuts dependent on continued disinflation.
For Databank Research, the Monetary Policy Committee is expected to adopt a wait-and-see approach as it monitors the effects of previous policy tightening.
It projects a continued disinflation trend, with inflation expected to settle between 17–19% by mid-year, supported by base effects and stable prices—assuming no major internal or external shocks.
With signs of relative currency stability and shifting global economic conditions, they are closely watching for the Committee’s next move.
The MPC’s decision on the policy rate will have implications for lending costs, investor confidence, and overall economic activity.
The meeting will conclude with a press briefing on Friday May 23, 2025 to provide further clarity on the central bank’s monetary stance and the measures it intends to take in sustaining economic stability.
