Accra: The Bank of Ghana (BoG) has maintained its Monetary Policy Rate (MPR) at 14 per cent amid heightened global inflationary risks linked to the protracted Middle East conflict. The decision was announced at the end of the 130th Monetary Policy Committee (MPC) meeting held from May 18 to 20, 2026.
According to Ghana News Agency, Dr. Johnson Pandit Asiama, Governor of the BoG, stated that the Committee considered the impact of ongoing geopolitical tensions on the global economy and possible spillovers to Ghana through trade and financial channels. "In taking the policy decision, the Committee acknowledged that ongoing geopolitical tensions in the Middle East have weakened the global growth outlook, intensified inflationary concerns, and heightened policy uncertainty, with potential implications for the domestic economy through trade and financial channels," he said.
Dr. Asiama highlighted that the conflict continued to disrupt maritime and air traffic, increase global energy prices, and heighten uncertainty across advanced and emerging economies. He noted that the International Monetary Fund had revised its 2026 global growth projection downward to 3.1 per cent from 3.3 per cent, warning that further reductions were possible if the conflict persisted.
On the domestic front, the MPC observed improved economic activity in the first quarter of 2026, supported by private sector credit, consumption, industrial output, and international trade. The Composite Index of Economic Activity expanded by 2.6 per cent year-on-year in March 2026, compared with 2.3 per cent in March 2025.
Headline inflation rose marginally to 3.4 per cent in April 2026 from 3.2 per cent in March 2026, marking the first increase since December 2024, driven mainly by non-food inflation. Provisional fiscal data for the first quarter of 2026 indicated that expenditure containment measures helped record a fiscal surplus of 0.1 per cent of Gross Domestic Product against a target deficit of 1.2 per cent.
Gross international reserves increased to US$14.4 billion as of May 18, 2026, representing 5.7 months of import cover, up from US$13.8 billion in December 2025. "Based on these considerations, the Committee assessed the risks to the outlook for inflation and growth as broadly balanced and decided to maintain the Monetary Policy Rate at 14 per cent," Dr. Asiama stated.
He mentioned that inflation is expected to trend upward into the medium-term target band due to exchange rate movements, fuel supply conditions, and transport fares. Dr. Asiama emphasized that the Committee would continue to monitor developments, particularly the potential domestic impact of geopolitical tensions, and take appropriate policy actions when necessary.