Bank of Ghana Holds Firm on 27% Policy Rate Amid Economic Recovery Efforts
In a decisive move to combat persistent inflation and support economic recovery, the Bank of Ghana (BoG) has announced that it will keep the monetary policy rate unchanged at 27%. This decision was made during the first Monetary Policy Committee (MPC) meeting of 2025, held at the newly commissioned headquarters, Bank Square1.
Governor Dr. Ernest Addison, addressing the press briefing, highlighted the ongoing challenges posed by elevated inflation, which stood at 23.8% in December 2024, significantly above the target of 15%. He attributed the high inflation to adverse climate conditions, including dry spells and delayed rains, which disrupted food production and supply chains1.
Despite these challenges, Dr. Addison expressed cautious optimism about the future, noting that the disinflation process is expected to resume with renewed fiscal consolidation efforts under the new administration’s economic policy agenda. The upcoming 2025 budget statement will play a crucial role in shaping these efforts and guiding the country towards macroeconomic stability1.
The BoG’s decision to maintain the policy rate reflects its commitment to managing inflation and ensuring a sustainable recovery for Ghana’s economy. While the path to achieving the medium-term inflation target of 8% ± 2% may take longer than anticipated, the central bank remains vigilant and focused on long-term stability
