Business News of 2026-09-23
BoG weighs policy rate decision as inflation, external risks rise
The Bank of Ghana (BoG) is considering whether to maintain its 14% Monetary Policy Rate as rising inflation and weakening foreign exchange reserves create new risks for the economy.
Opening the 132nd Monetary Policy Committee (MPC) meeting on Wednesday, September 23, 2026, Governor Dr Johnson Pandit Asiama said the Committee would assess whether recent economic developments warranted a change in the policy rate.
At its July meeting, the MPC unanimously maintained the rate at 14%. However, Dr Asiama said the economic environment had since changed, particularly due to the prolonged conflict in the Middle East and its impact on global energy prices.
Brent crude oil has risen from above US$85 per barrel at the time of the last MPC meeting to about US$107 per barrel, raising concerns about the impact of higher energy and fertiliser costs on Ghana’s economy.
“The level remains well below the lower bound of the target band, but the direction has been upward,” Dr Asiama said, referring to inflation, which increased from 3.2% in March to 5.0% in August.
He said the MPC must determine whether the increase in inflation would be a temporary adjustment caused by higher energy prices and administered tariffs or whether it could become a more persistent source of price pressure.
The Governor also raised concerns about Ghana’s external position, saying gross international reserves had fallen to US$11.07 billion, equivalent to 4.2 months of import cover.
He said the weaker current account position, slower gold shipments and the pause in GoldBod’s gold exports since mid-August required close monitoring ahead of the expected increase in foreign exchange demand in the final quarter.
“Rebuilding net foreign assets must therefore remain the priority heading into the fourth quarter,” Dr Asiama said.
He added that the MPC would have to balance these risks against stronger domestic conditions, including 6.0% real GDP growth in the second quarter, a stronger fiscal position and a banking sector that remains sound and profitable.
DR/MA
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