Ghana's Central Bank Holds Emergency Meeting, Key Rate Decision Expected in 10 Days

 

Ghana’s central bank held an emergency meeting on Thursday to assess recent economic data and market conditions but did not deliberate on changes to its key policy rate. Central Bank Governor Johnson Asiama clarified that the Monetary Policy Committee (MPC) used the session to review economic indicators and monitor developments in financial markets ahead of its formal policy meeting scheduled to begin in 10 days.

Originally, the Bank of Ghana's fourth rate-setting meeting for 2025 was planned to start on July 28, with the rate decision to be announced on July 30. However, due to evolving market dynamics, the central bank convened early to evaluate the economic environment, though it refrained from making any monetary policy decisions at this stage. Governor Asiama stated that the committee used the session to assess numbers and explore potential options for the upcoming meeting, where a policy statement will be prepared and released.

The central bank last met in May and opted to maintain the benchmark policy rate at 28.0 percent. This decision aligned with efforts to curb inflation and stabilize the national currency amid signs of economic improvement. Ghana has seen a consistent decline in consumer price inflation, which dropped to 13.7 percent in June the lowest since 2021 marking six consecutive months of easing inflationary pressures. Similarly, producer price inflation decreased to 5.9 percent year-on-year in June from 10.2 percent in May.

The mid-year fiscal policy review by Ghana’s finance minister, scheduled for July 24, is expected to further inform the central bank’s decision-making process. The review will provide updates on the government's economic outlook and fiscal plans in the cocoa-, gold-, and oil-rich West African nation.

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