Policy rate of 14% between May and September 2026 was meant to preserve economic stability – BoG Governor

The Bank of Ghana Governor, Dr. Johnson Asiama, has strongly defended the decision by the Monetary Policy Committee to hold the policy rate at 14% between May and September 2026.

According to him, the Committee’s action is to preserve economic stability despite unfavourable external conditions, including rising global oil prices and domestic price pressures.

The Governor disclosed this when he appeared before the Parliamentary Committee on Economy and Development to update Parliament on the Monetary Policy and Macro-Economic Developments in the first half of 2026.

The clarification by the Governor is coming at a time when some market analysts had pushed for a rate cut because inflation during the period declined, whilst other macroeconomic conditions improved.

At the last Monetary Policy Committee Meeting in September 2026, the majority of the MPC members cited external risks to the economy and concerns about rising inflation as one of the major reasons for the steady policy rate.

Fiscal and Economic developmentDr. Johnson Asiama also took the opportunity to explain to the Committee the workings of the Bank of Ghana, and how the fiscal authorities had played a major role in helping Gross Domestic Product (GDP) growth to hit 6.4% in the first quarter of this year, while inflation fell to 3.2% in March 2026 and remained below the 6-10% target band.

The Governor also mentioned the developments in the external sector, saying it has been good, with “Ghana recording a trade surplus of US$8.81 billion and a current account surplus of US$5.1 billion”.

He also intimated that “The country’s international reserves reached US$12.94 billion, equivalent to 5.0 months of import cover".

On the banking front, Dr. Asiama highlighted how interest rates and credit conditions have improved, with the average lending rate dropping from 27% to 15.6% while private sector credit grew by 41.2 %.

Total Assets in the banking sector, the Governor stated, rose by 30.7% to reach GH¢502.4 billion, while the Capital Adequacy Ratio also stood at 20.4%, with Non-Performing Loans declining to16.1% from 23.1%.

The Bank of Ghana Governor also talked about some key reforms that have taken place, including a uniform cash ratio of 20%, a transparent and rules-based foreign exchange intervention framework and the Ghana Accelerated National Reserve Accumulation Programme (GANRAP), which actually targets 15 months of import cover by 2028.

Dr. Asiama concluded, expressing his outfit's commitment to price stability, transparency and accountability to Parliament and the people of Ghana