The Bank of Ghana has left its benchmark interest rate unchanged at 27 percent following its March monetary policy committee meeting.
Inflation eased to 23 percent but remained above the 10 percent upper limit of the central bank’s target band. This is the third consecutive meeting the committee has held rates steady.
Governor Johnson Asiama, who presided over the meeting for the first time, said inflation was slowing but remained high due to persistent food inflation and the depreciation of the cedi against the US dollar.
The cedi has weakened sharply since 2021, contributing to Ghana’s average inflation rate of 23 percent over the past year.
The Bank of Ghana maintained that inflation is expected to return to target by the second quarter of 2026.
The committee opted to hold rates as declining Treasury bill yields have already eased financial conditions. Analysts expect the central bank to keep its tightening stance until inflation shows a sustained downward trend.
The government targets inflation of 11.9 percent by the end of the year and projects economic growth of 4.4 percent in 2025.
Ghana faces ₵150 billion in domestic debt obligations and $8.7 billion in external debt over the next four years. The Finance Minister, Cassiel Ato Forson, described the debt situation as a major challenge.
The Bank of Ghana stated that it will continue to prioritize price stability and exchange rate management.
