Dr. Johnson Pandit Asiama, BoG Governor
The Bank of Ghana (BoG) has postponed its next monetary policy rate decision to the end of the month, assuring Ghanaians that the country’s economic recovery will not be compromised despite emerging global and domestic uncertainties.
In a statement released after an emergency Monetary Policy Committee (MPC) meeting held on Thursday, July 17, 2025, BoG Governor Dr. Johnson Asiama said the central bank remains committed to proactive, data-driven policymaking aimed at protecting Ghana’s recent economic gains.
Originally scheduled for July 21–23, the 125th regular MPC meeting will now take place from Monday, July 28 to Wednesday, July 30, 2025.
The Bank will announce its policy rate decision at the conclusion of that meeting.
Emergency meeting reflects heightened vigilance
The emergency meeting was convened to assess whether the current economic conditions warranted any immediate action. However, the BoG concluded that while close monitoring is essential, no drastic changes were necessary at this time.
The deferral of the policy announcement indicates the Bank’s confidence in the ongoing recovery but also demonstrates its readiness to act swiftly should conditions demand it.
Inflation falls for 6th consecutive month
According to the BoG, inflationary pressures have eased significantly.
Headline inflation dropped to 13.7% in June 2025—its lowest level in over a year—after peaking at 23.8% in December 2024.
Core inflation measures, which strip out volatile items, also show a re-anchoring of inflation expectations.
The BoG credits this trend to prudent monetary policy, improved currency stability, and stronger food supplies.
Real Sector Posts Strong Q1 Growth
The economy is showing strong signs of recovery, with real Gross Domestic Product (GDP) growth reaching 5.3% in the first quarter of 2025.
Non-oil GDP rose even higher at 6.8%, driven by solid gains in agriculture and services.
This performance, according to the BoG, reflects growing investor confidence, improved macroeconomic fundamentals, and the positive impact of government stimulus and structural reforms.
External sector strengthens, reserves surge
Ghana’s external position has improved markedly in the first half of 2025.
Provisional figures show a trade surplus of $5.6 billion and a current account surplus of $3.4 billion—more than double the figures recorded during the same period in 2024.
These surpluses have boosted gross international reserves, which stood at $11.1 billion at the end of June 2025, equivalent to 4.8 months of import cover.
This is up from $8.98 billion at the end of 2024, providing a strong buffer against future external shocks.
Cedi appreciates by over 42% in 2025
The Ghanaian cedi has appreciated sharply by 42.6% against the US dollar year-to-date.
The appreciation is being fueled by strong foreign exchange inflows from gold and cocoa exports, remittances, and increased investor confidence.
BoG officials also credit this performance to tight monetary policy and fiscal discipline.
The stronger cedi has helped reduce imported inflation, improving price stability and overall economic sentiment.
Global headwinds persist
Despite the positive domestic indicators, the BoG remains cautious about the global economic outlook.
Worldwide growth is projected to slow to 2.8% in 2025, down from 3.3% in 2024.
Financial conditions in major economies remain tight, and the disinflation process is uneven.
These factors pose potential risks to Ghana’s export earnings, capital inflows, and debt service conditions, all of which could affect the policy landscape in the months ahead.
All eyes on July 30 announcement
Analysts, businesses, and investors are now closely watching the upcoming MPC meetings at the end of the month, where the BoG is expected to announce its updated policy stance.
Given the sharp decline in inflation, improved reserves, and cedi appreciation, some observers are calling for a cautious rate cut to support growth.
Others, however, argue that the central bank should maintain a tight stance in the face of global volatility.
Governor Asiama said the central bank would not hesitate to adjust its policy rate if macroeconomic conditions change.
With just under two weeks to go, the July 30 policy announcement is shaping up to be a pivotal moment in Ghana’s economic trajectory as the country seeks to balance growth momentum with long-term stability.