`BoG flags inflation risks as rising oil prices threaten economic stability
The Bank of Ghana has warned that policymakers are under increasing pressure to strike a balance between controlling inflation and sustaining economic growth, as rising global energy prices threaten recent macroeconomic gains.
Opening the 130th Monetary Policy Committee (MPC) meeting, Governor Dr Johnson Pandit Asiama said Ghana’s economy had recorded notable improvements since March, supported by stronger external buffers, renewed investor confidence, and easing inflationary pressures.
However, he cautioned that prolonged geopolitical tensions in the Middle East and rising crude oil prices were creating new inflation risks that could undermine recent stability.
“As inflation remains low,” Dr Asiama said, the committee would assess whether adjustments to the country’s interest rate structure and monetary policy framework were necessary to prevent inflation expectations from becoming “dislodged.”
He disclosed that headline inflation rose to 3.4 per cent in April 2026, marking its first increase since December 2025. He also pointed to domestic energy supply disruptions and higher import costs as additional risks to price stability.
The Governor further noted that the MPC would review the effectiveness of current monetary policy transmission mechanisms in supporting credit growth, lending activity, and overall economic performance.
According to him, the committee’s deliberations will focus on maintaining stability while ensuring that monetary policy continues to support sustainable economic expansion amid evolving global conditions.
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