BoG’s MPC Commences 124th Meeting Amid Cedi Gains and Easing Inflation Pressures
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) begins its 124th meeting today, with a focus on assessing recent macroeconomic developments and determining the country’s monetary policy direction.
The meeting comes at a crucial time, as the Ghana Cedi has recently made notable gains against the US dollar, while inflationary pressures show signs of easing following a series of tightening measures by the central bank.
At its last meeting in March 2025, the Committee raised the monetary policy rate by 100 basis points to 28 percent. The hike, according to BoG Governor Dr. Johnson Asiama, was intended to “re-anchor the inflation-moderating process” and sustain the downward trajectory of inflation.
“The tightening stance was necessary to reinforce disinflation and maintain investor confidence,” Dr. Asiama stated.
Market watchers largely expect the MPC to maintain the policy rate at 28 percent at the end of this week’s deliberations, with a cautious approach prevailing amid ongoing evaluation of the policy environment.
Analysts at Databank Research anticipate a wait-and-see posture from the Committee, noting that recent policy measures require time to fully transmit through the economy. The research firm projects inflation to continue its downward trend, settling between 17 and 19 percent by mid-2025, barring any significant internal or external shocks.
With currency markets showing relative calm and global economic conditions gradually shifting, the MPC’s next move is expected to provide critical insight into the BoG’s stance on sustaining macroeconomic stability.
The policy decision, which will be announced at a press briefing on Friday, May 23, 2025, will have significant implications for lending rates, investor sentiment, and broader economic activity.
