BoG maintains policy rate at 28% to tame inflation risks amid cedi gains

The Bank of Ghana (BoG) has opted to hold its benchmark monetary policy rate steady at 28%, signaling a cautious approach amid persistent inflation risks.

The decision, announced on Friday, May 23, 2025, followed the conclusion of the central bank’s latest Monetary Policy Committee (MPC) meeting.

Despite gains in currency stability and improving macroeconomic fundamentals, the BoG is choosing to prioritize inflation control over easing monetary conditions.

Governor Dr. Johnson Asiama, speaking to journalists at the Bank Square, explained that the move is aimed at keeping inflation expectations firmly anchored, especially with concerns that price pressures could resurface in the latter half of the year.

While many in the private sector and financial industry had hoped for a slight reduction in the policy rate to spur lending and investment, the BoG maintained that the inflation outlook remains too uncertain to justify any loosening of monetary policy at this stage.

The central bank emphasized that sustaining the recent economic gains will require a continued tight policy stance.