Ghana's Central Bank Holds Key Rate at 27% Amid Inflation Optimism

The Bank of Ghana's Monetary Policy Committee has decided to hold the policy rate steady at 27%, maintaining the pause that began earlier this year. Governor Dr. Ernest Addison cited encouraging trends in headline inflation, which has declined for the fifth consecutive month to 22.8%.

"We are seeing the results of our tight monetary stance," Dr. Addison said at the post-MPC press conference. "Core inflation continues to decelerate, and inflation expectations are becoming better anchored."

The decision was widely anticipated by economists and market participants. The Ghana cedi has stabilized in recent weeks, supported by improved foreign exchange reserves and the completion of the third IMF review under the $3 billion Extended Credit Facility.

Analysts at Databank Research noted that the hold signals the BoG is preparing for a gradual easing cycle in the second half of the year, provided inflation continues its downward trajectory. "We expect a 200 basis point cut by Q4 if current trends persist," said their chief economist.

The Committee also highlighted risks from global oil price volatility and fiscal pressures ahead of the government's mid-year budget review. The next MPC meeting is scheduled for July.