The Bank of Ghana (BoG) has kept its monetary policy rate steady at 27% for the second consecutive meeting, aiming to address persistent inflation risks while supporting the nation’s economic recovery efforts.
This decision follows Ghana’s failure to meet its 2024 end-year inflation target of 15%, as inflation surged to 23.8% in December—its highest level in eight months.
Speaking at the first Monetary Policy Committee (MPC) briefing of 2025 at the Central Bank’s new headquarters, Governor Dr. Ernest Addison explained that inflation remains elevated, largely due to rising food prices driven by adverse climate conditions and supply chain disruptions.
“The inflation profile remains elevated, largely driven by food price movements, especially in the last quarter of the year. Dry spells in food-growing regions and the delayed onset of rains negatively impacted production,” Dr. Addison noted.
He expressed optimism about a gradual return to disinflation, contingent on fiscal consolidation measures under the new administration’s economic policy agenda and the forthcoming 2025 budget.
“While inflation in 2024 exceeded the target, we expect the disinflation process to resume, supported by fiscal reforms outlined in the upcoming 2025 budget statement,” Dr. Addison said.
Ghana’s inflation rate remains well above the BoG’s medium-term target of 8% ± 2%. However, the Bank’s forecasts suggest a gradual decline in inflation, though achieving the target may take longer than initially expected.
“The Bank’s latest inflation forecast shows a steady decline, though it will take extended efforts to achieve the medium-term target of 8% ± 2%. Given this outlook, the MPC has decided to maintain the policy rate at 27%,” the Governor added.
Dr. Addison emphasized that the decision reflects the BoG’s dedication to stabilizing inflation and ensuring macroeconomic stability, both critical for sustaining the recovery of Ghana’s gold- and cocoa-driven economy.