The Monetary Policy Committee (MPC) of the Bank of Ghana has maintained the policy rate at 14.0% following the conclusion of its 130th meeting, citing stable inflation conditions and improving confidence in the economy.

The committee said its assessment of both domestic and external risks to Ghana’s inflation outlook, currently at 3.4%, showed that risks remain broadly balanced. Although recent increases in fuel prices could place some pressure on inflation, the MPC believes existing economic measures will help contain any major impact.

According to the committee, exchange rate stability, stronger foreign reserve buffers and continued fiscal discipline are expected to support efforts to keep inflation under control.

Speaking at the Bank Square in Accra, Governor of the Bank of Ghana, Johnson Asiama, explained that the committee considered recent progress in inflation moderation, exchange rate stability and improving investor confidence before deciding to keep the benchmark rate unchanged.

He noted that the decision is aimed at maintaining the current monetary policy stance to support the country’s disinflation process while also encouraging economic recovery.

Dr. Asiama said headline inflation has continued to decline in recent months, supported by tight monetary policy measures, fiscal consolidation efforts and relative stability in the foreign exchange market.

He, however, cautioned that some risks still remain, particularly from global commodity price movements, external economic uncertainties and domestic fiscal developments.

The Governor also highlighted improvements in Ghana’s external sector, including stronger reserve accumulation and increased foreign exchange inflows, which have contributed to stabilising the cedi.

The Monetary Policy Rate serves as the benchmark interest rate that influences borrowing costs for commercial banks, businesses and consumers across the economy.