Bank of Ghana’s MPC Convenes 125th Meeting to Review Economy Amid Renewed Confidence
Accra, July 28, 2025 — The Monetary Policy Committee (MPC) of the Bank of Ghana has begun its 125th regular meeting today, aimed at reviewing Ghana’s latest macroeconomic indicators and shaping the country’s near-term monetary policy direction.
The three-day meeting, which runs through Wednesday, July 30, will assess inflation trends, exchange rate performance, and financial sector stability, all within the context of Ghana’s economic recovery and ongoing IMF-backed reforms.
The Committee’s decisions are highly anticipated, especially after it held a surprise emergency session on July 17, during which it expressed renewed optimism about Ghana’s macroeconomic outlook, citing anchored inflation expectations and strengthened external reserves.
Current Policy Landscape
At its previous sitting, the MPC maintained the Monetary Policy Rate (MPR) at 28%, a move Governor Dr. Johnson Asiama described as “cautious” given persistent inflation risks, even as the cedi stabilised and broader economic indicators improved.
Market watchers are now speculating whether the MPC will maintain the current rate, hike it to control inflation further, or adopt a slight cut to spur borrowing and investment.
“The last emergency meeting gave us a sense of optimism from the Bank. But the decision now hinges on the inflation trajectory, the strength of the cedi, and progress on fiscal consolidation,” said a senior analyst at Databank.
Key Considerations
- Inflation: Ghana has seen inflation ease significantly—from 23.5% at the start of the year to 13.7% by the end of June—bringing it closer to the government’s revised year-end target of 11.9%.
- Exchange Rate Stability: The Ghana cedi has shown signs of stabilisation in recent months, aided by external inflows and fiscal reforms.
- Banking Sector Health: The recapitalisation of key state banks, including the National Investment Bank (NIB), has been a key policy focus, helping restore confidence in the financial system.
- Investor Sentiment: Improved reserve buffers—bolstered by IMF disbursements and gains from the Eurobond restructuring process—have enhanced market confidence, though borrowing costs remain a concern.
Looking Ahead
The MPC will conclude its discussions on Wednesday, July 30, followed by a press conference where the new policy rate decision will be formally announced. The outcome will be closely monitored by banks, investors, and consumers, as the MPR influences commercial interest rates, credit flows, and economic activity.
A reduction in the policy rate could ease borrowing costs and stimulate growth, while a rate hike might signal renewed inflationary pressure or a pre-emptive tightening in response to global financial trends.
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