ACCRA (Reuters) – Ghana’s central bank held its benchmark lending rate at 14% on Wednesday, as concerns over inflation prompted policymakers to pause an easing cycle.
The central bank has been on an aggressive easing streak that has seen it halve its policy rate from 28% in May 2025, as sharp disinflation created scope to unwind years of monetary tightening.
The decision was in line with a Reuters poll of analysts who had expected the bank to keep the rate unchanged.
Governor Johnson Asiama told a press conference that the Middle East conflict had “stoked inflationary concerns and has also heightened policy uncertainty, with potential implications for the domestic economy through the trade and financial channels”.
The West African gold, oil and cocoa-producing nation is emerging from its most severe economic crisis in decades.
Consumer inflation in Ghana rose for the first time since December 2024 to 3.4% year-on-year in April from 3.2% in March.
Asiama said inflation expectations among consumers, businesses and the financial sector edged up slightly but remained broadly anchored within the medium-term target band of 8%, with a tolerance band of 2 percentage points either side.
“The latest forecast suggested that inflation is expected to trend upward into the medium-term target band, largely due to base drift effects related to exchange rate movements, food supply conditions, and transport fares,” he said.
Opening the rate-setting Monetary Policy Committee meeting on Monday, Asiama said persistently high energy prices could unsettle inflation expectations before they are firmly anchored.
