Accra: In a move that has drawn widespread attention from economic observers and financial markets, the Bank of Ghana has called for an emergency meeting of its Monetary Policy Committee (MPC) on Thursday, July 17 well ahead of the originally scheduled session set for July 28. The central bank announced that the meeting was convened to deliberate on recent significant economic trends, particularly the sustained fall in inflation and other macroeconomic indicators.
This unexpected step comes in the backdrop of encouraging data showing that Ghana's inflation rate continues to fall at a steady pace. Consumer price inflation dropped to 13.7% in June, marking a notable decline from earlier highs and registering the lowest rate seen since 2021. The Producer Price Index has also reflected this easing trend, coming down to 5.9% in June from 10.2% in May. These figures have intensified public and institutional calls for a possible reduction in the policy rate to help spur economic activity.
During its last policy meeting in May, the MPC maintained the benchmark interest rate at 28.0%, citing the need for caution and monetary discipline. However, with inflation softening faster than expected, speculation is mounting that the central bank might shift its stance towards easing. Businesses, lenders, and consumers have all expressed optimism that borrowing costs could soon be reduced.
Despite the improving inflation outlook, members of the committee are reportedly divided on the timing and scale of any rate cut. The International Monetary Fund, which has provided substantial fiscal assistance to Ghana in recent years, has recommended that the Bank of Ghana maintain a firm monetary policy stance to ensure inflation remains under control.
Adding further weight to the timing of the emergency meeting is the upcoming mid-year budget review by Ghana’s Finance Minister on July 24. That address is expected to shed light on the country’s fiscal performance, public debt, and sectoral growth particularly in cocoa, gold, and petroleum exports.
With the MPC decision now anticipated within the next 24 hours, economists and investors alike are closely watching to see whether Ghana’s central bank will respond to the improving macroeconomic environment with a rate cut, or maintain its cautious stance amid global uncertainties.