The International Monetary Fund (IMF) is urging the Bank of Ghana to maintain a tight monetary policy stance to sustain recent progress in lowering inflation, even as some stakeholders call for interest rate cuts.
At a press briefing in Washington, IMF Communications Director Julie Kozack acknowledged Ghana’s encouraging disinflation momentum, noting that inflation had declined sharply from a peak of 54 percent at the end of 2022 to 13.7 percent by June 2025.
“Going forward, it will be important for monetary policy to remain sufficiently tight, consistent with bringing inflation down to the Bank of Ghana’s target range of 8 percent, plus or minus 2 percentage points,” she stated.
The IMF’s caution comes as Ghana’s headline inflation has fallen for six consecutive months reaching 13.7 percent in June, down from 23.8 percent in December 2024.
Despite this progress, the policy rate remains elevated at 28 percent, with some analysts and business groups advocating for easing in response to improved macroeconomic indicators.
“Ghana has made good progress since the beginning of the program in reducing inflation. Inflation was extremely high at the end of 2022 at 54%. It has now come down substantially to 14% at end June 2025″, she added.
The IMF’s remarks coincide with the start of the Bank of Ghana’s 125th Monetary Policy Committee meeting, which began today, Monday, July 28.
The three-day meeting will assess recent economic developments, including inflation trends, currency performance, and financial sector stability.
Ghana is currently under a $3 billion IMF-supported Extended Credit Facility aimed at restoring macroeconomic stability, ensuring debt sustainability and promoting inclusive growth.