Ghana MPC meets as inflation rises to 5%, cedi faces pressure

ACCRA, Ghana: Ghana’s Monetary Policy Committee has begun its September meeting as inflation rose to 5% in August from 4.6% in July, while renewed pressure on the Ghana cedi adds to the policy challenges facing the Bank of Ghana.

Kanyi Daily reports that the MPC began deliberations on September 23, 2026, according to Joy Business, with exchange-rate pressures and external risks expected to influence the committee’s decision on the policy rate.

Inflation increased after reaching 4.6% in July, reversing part of the earlier decline in price pressures. The report said the rise could complicate the central bank’s effort to balance price stability with economic growth.

“Inflation has been rising in recent months, reaching 5% in August 2026, raising concerns about further price pressures,” the report said.

The Ghana cedi is another consideration as policymakers assess whether monetary policy can limit further depreciation without worsening financing conditions for businesses. A tighter policy stance could help address inflation and exchange-rate pressures, but higher rates could also increase borrowing costs and weigh on economic activity.

External developments could add to the pressure, with weaker gold prices potentially reducing foreign-exchange inflows through GoldBod, slowing reserve accumulation and limiting the Bank of Ghana’s capacity to support the currency market. The policy rate currently stands at 14%.

Ghana had reduced its policy rate significantly over the past year as inflation moderated, cutting it to 21.5% in September 2025 and then to 18% in November. Inflation subsequently fell to 3.2% in March 2026 before rising to 3.4% in April and later reaching 5% in August.

The Bank of Ghana maintained its policy rate at 14% on July 23, 2026, after considering risks linked to Middle East tensions and their potential effect on inflation. The September meeting is therefore taking place after a series of rate cuts and a recent increase in consumer prices.