Four out of six BoG MPC members vote for 3% policy rate cut amid inflation concerns
A majority of members on the Bank of Ghana’s Monetary Policy Committee (MPC) have voted in favour of a 3.0% cut in the Monetary Policy Rate (MPR), according to official minutes released by the Bank.
The decision, which saw four out of six members backing the move, reflects growing optimism about disinflationary trends but also cautious monitoring of emerging inflation risks.
In their statement, the majority noted that although the country has experienced a consistent decline in inflation, there are “upside risks” that could threaten the trend. These include geopolitical tensions, global tariff wars, upcoming utility tariff adjustments, and rising crude oil prices, all of which could exert upward pressure on inflation in the coming months.
Despite these risks, the members expressed willingness to further reduce the MPR if inflation continues to ease:
“We will continue to assess incoming data and likely reduce the policy rate further, should the disinflation trend continue,” the majority said, reaffirming the Committee’s commitment to price stability and inclusive, sustainable growth.
Dissenting opinions
However, two members dissented from the majority decision, proposing different rate cuts:
- One member called for a more aggressive cut of 350 basis points to 24.5%, citing concerns that inflation remains above the BoG’s medium-term target, especially amid global economic uncertainty.
- Another member proposed a 250 basis point cut to 25.5%, citing similar worries over inflation pressures.
Composition of the Committee
The MPC is constituted under the Bank of Ghana Act and includes:
- The Governor (Chair)
- The First and Second Deputy Governors
- The Head of Banking Operations
- Two additional members appointed by the Minister of Finance, chosen for their relevant expertise.
This latest vote provides insight into the divergent views within the Committee regarding the pace and extent of monetary easing, even as Ghana navigates the complexities of post-pandemic recovery, currency volatility, and inflationary pressures.
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