The Bank of Ghana’s Monetary Policy Committee (MPC) will hold its 129th Regular Meeting from Monday, March 16, to Wednesday, March 18, 2026, to review recent economic developments. The session will wrap up with a press conference on March 18, where the committee announces its decisions.
This follows the 128th MPC meeting from January 26-28, 2026, where the committee, by majority vote, cut the Monetary Policy Rate (MPR) by 250 basis points to 15.5 percent.
One MPC member highlighted a positive global outlook, noting solid economic activity in 2025 projected to grow 3.3 percent in 2026. Inflation has eased worldwide, leading most central banks to ease policy amid improved financial conditions like a softer US dollar and lower yields despite risks from geopolitical tensions, tariffs, and oil volatility.
Domestically, conditions have strengthened: inflation fell for the 12th straight month to 5.4 percent in December 2025, thanks to stable exchange rates, better supply chains, and prior policies. Consumer, business, and expert inflation expectations have dropped, supporting disinflation.
The external sector stays robust with a large current account surplus and strong reserves bolstering the currency. Real economy indicators GDP, Composite Index of Economic Activity (CIEA), Purchasing Managers’ Index (PMI), and sentiment signal ongoing expansion. Liquidity is improving, with early private credit recovery.
Risks to inflation are balanced: upward pressures from utility hikes, farm disruptions, and commodity prices are countered by a strong currency, lower transport fares, VAT, and fuel costs. Forecasts show inflation staying at or below the target band’s lower end.
The member argued that sustained disinflation, anchored expectations, and solid fundamentals allow measured easing without risking price stability. “Maintaining tightness could constrain growth and delay credit recovery,” they said. “A cautious 250 basis point cut to 15.5 percent aligns real rates with inflation, boosts confidence, spurs credit, and supports recovery while staying vigilant against risks.”
Story by: Mercy Addai Turkson#ahotorfmonline.com