BoG MPC begins 129th meeting amid economic recovery and disinflation

The Monetary Policy Committee (MPC) of the Bank of Ghana has commenced its 129th Regular Meeting, running from Monday, March 16, 2026, to Wednesday, March 18, 2026. The committee is reviewing recent developments in the Ghanaian economy.

The meeting will conclude with a press conference on Wednesday, March 18, to announce the Committee’s policy decision.

At the 128th MPC meeting, held from January 26–28, 2026, the Committee, by majority vote, reduced the Monetary Policy Rate (MPR) by 250 basis points to 15.5 percent.

One MPC member highlighted that global economic activity remained solid in 2025 and is projected to grow by 3.3 percent in 2026. Inflation has eased across major economies, prompting most central banks to adopt looser monetary policies. Improved global financial conditions—supported by a softer US dollar and lower yields—provide a favourable backdrop, although geopolitical tensions, unpredictable tariff adjustments, and oil price volatility continue to pose risks.

Domestically, macroeconomic conditions have strengthened further. Inflation declined for the twelfth consecutive month to 5.4 percent in December 2025, driven by a stable exchange rate, improved supply dynamics, and previous policy measures. Inflation expectations among consumers, firms, financial markets, and economic experts have also fallen, reinforcing the disinflation trend.

The MPC member noted, “The external sector remains robust, underpinned by a sizable current account surplus, strong foreign reserves, and solid currency performance. Real sector indicators—including GDP trends, the Composite Index of Economic Activity (CIEA), the Purchasing Managers’ Index (PMI), and sentiment measures—point to continued economic expansion. Monetary and financial conditions are gradually normalising, with improving liquidity and early signs of recovery in private sector credit.”

“Risks to the inflation outlook are broadly balanced. Potential upward pressures from utility tariff adjustments, agricultural supply disruptions, and global commodity price movements are offset by downward pressures from a strong currency, expected reductions in transport fares, and lower VAT and fuel prices. Near-term forecasts indicate inflation will remain within or below the lower bound of the target band. Given sustained disinflation, anchored expectations, and strengthened external fundamentals, maintaining the previous degree of monetary tightness could unduly constrain economic activity and delay credit recovery. Current conditions provide room for a measured easing of the policy stance. The economy is now at a stage where disinflation is well established, expectations are firmly anchored, and external conditions are favourable. A cautious adjustment in the policy rate will help align real rates with current inflation dynamics, support confidence, stimulate credit growth, and reinforce the ongoing economic recovery, while keeping inflation within the medium-term target range. I therefore vote to reduce the policy rate by 250 basis points to 15.5 percent, while reaffirming the Committee’s commitment to act swiftly if inflation risks emerge,” he added.

The MPC’s ongoing deliberations will guide Ghana’s monetary policy for the coming months as the economy continues its recovery and disinflationary trend.