BoG Cites Sustained Disinflation and Strong External Sector in Pre-MPC Review
The Bank of Ghana convened an emergency meeting of its Monetary Policy Committee (MPC) on July 17 to assess whether prevailing economic conditions warranted policy action ahead of its scheduled meeting later this month.
In a statement released Friday, the central bank said the meeting formed part of its commitment to “proactive and responsive policy formulation,” and cited significant improvements across key macroeconomic indicators.
Headline inflation has declined for six consecutive months, reaching 13.7% in June 2025 — down sharply from 23.8% in December 2024 — while core inflation measures indicate a re-anchoring of inflation expectations.
Growth in the real economy remains robust, with GDP expanding 5.3% year-on-year in the first quarter, buoyed by strong non-oil sector activity. Agriculture and services were the main drivers, with non-oil GDP rising by 6.8%.
The external sector also showed marked improvement. Ghana posted a provisional trade surplus of $5.6bn and a current account surplus of $3.4bn for the first half of 2025 — more than double the surpluses recorded in the same period last year.
Gross international reserves rose to $11.1bn at the end of June, equivalent to 4.8 months of import cover, compared to $8.98bn at the end of 2024.
Meanwhile, the Ghana cedi has appreciated by 42.6% year-to-date against the US dollar, bolstered by strong foreign exchange inflows from gold and cocoa exports, private remittances, improved investor confidence, and the central bank’s prudent policy stance.
Despite the positive domestic outlook, the Bank of Ghana warned of persistent global uncertainties. Global GDP growth is expected to decelerate to 2.8% in 2025 from 3.3% in 2024, amid tight financial conditions and uneven disinflation.
The central bank did not announce any immediate policy rate adjustment but reaffirmed its commitment to safeguarding recent economic gains while supporting the ongoing recovery.
The 125th regular MPC meeting is scheduled to take place from July 28 to July 30, when a formal policy decision is expected to be announced.
