Editorial: MPC will continue to closely monitor developments…

Bank of Ghana Governor Dr. Asiamah has expressed grave worry about implications of the country’s scheduled exit from the IMF programme later this year, particularly with regard to uncertainties in the global environment.

His major concern is that they could pose challenges to capital flows and exchange rate dynamics. The BoG Governor however said the central bank will monitor and maintain vigilance in this regard.

Against this backdrop, the Bank’s policy strategy emphasises caution and vigilance. With headline inflation now firmly below the lower band of the medium-term target, it provides space for additional rate cuts while still maintaining a sufficiently tight policy stance to safeguard price stability.

At its 128th Monetary Policy Committee recently, BoG cut its benchmark interest rate by 250 basis points (bps) to 15.5 percent – extending its easing cycle to a four-year low as falling inflation and improved macroeconomic conditions continue.

The decision reflects broad gains in price stability, fiscal discipline and external buffers, which have strengthened confidence in the economy.

Dr. Asiama told media in an encounter that the Committee will continue to monitor developments closely and take appropriate policy actions that ensure the gains from macroeconomic stability are translated into sustainable growth.

At its last meeting in November, the MPC lowered its policy rate by 350 bps to 18 percent – taking cumulative reductions for the year to 1,000 bps.

With stability largely achieved, the focus of policy is now gradually shifting toward consolidating these gains and supporting stronger real sector recovery, job creation and improved financial intermediation, Dr. Asiama added.

The next policy decision will be taken during March 16–18, 2026 at the scheduled MPC meeting.

The post Editorial: MPC will continue to closely monitor developments… appeared first on The Business & Financial Times.

Read Full Story