Inflation, cedi depreciation put BoG’s MPC under pressure as policy rate decision looms

Rising inflation, renewed pressure on the Ghana cedi and concerns over economic growth are expected to dominate discussions as the Bank of Ghana’s Monetary Policy Committee begins a three-day meeting to review developments in the economy. A key question before the Committee is whether the current policy rate should be increased to contain recent inflationary pressures. The MPC began its meeting on Wednesday, September 23, 2026, and is expected to conclude its deliberations on Thursday, September 24, with the Bank of Ghana announcing its decision on the policy rate. Inflation has been rising in recent months, reaching 5% in August 2026, raising concerns about further price pressures. This could strengthen the case for a policy rate hike, alongside other monetary policy measures, to contain inflation.

However, an increase in the policy rate could also have implications for businesses that are already struggling to access credit. The Ghana cedi is another key issue expected to feature prominently in the MPC’s deliberations. There are views that using the policy rate to support the cedi could help limit further depreciation in the coming months. Market analysts are also expected to consider developments in the Middle East and recent changes in US interest rates and how these could affect Ghana’s economy. Potential effects include lower gold prices, reduced foreign exchange inflows through the GoldBod, slower reserve accumulation, reduced capacity for foreign exchange intervention and additional pressure on the exchange rate. These developments could also feed into domestic inflationary pressures. At the same time, some analysts believe the gap between inflation and the policy rate remains sufficiently wide to warrant caution over any further tightening. With inflation at…