Today, Monday, March 24, 2025, marked the start of the 123rd meeting of the Bank of Ghana’s (BoG) Monetary Policy Committee (MPC), which is tasked for evaluating Ghana’s economic situation and deciding on steps to preserve fiscal stability.
Dr. Johnson Asiama, the recently appointed governor, is leading this meeting for the first time. On Friday, March 28, 2025, a significant policy pronouncement will mark the end of the three-day summit. In January 2025, the MPC last maintained the policy rate at 27%, citing ongoing inflationary pressures. With persistently rising inflation and persistent debt issues, the Central Bank now has to make a more difficult decision.
Ghana’s inflation has remained elevated for over two years, recording 23.2% in 2023 and 23.8% in 2024, with the latest rate at 23.1% as of February 2025. Simultaneously, Treasury bill rates have been declining, raising concerns about liquidity management and investor confidence in government securities. With the government targeting an end-of-year inflation rate of 11.9% and a 4.4% overall real GDP growth target, businesses, investors, and economic analysts are closely watching for signals on potential interest rate adjustments and other monetary policy interventions.
The key question is whether the central bank will maintain the policy rate at 27 percent, as some industry players advocate, or whether there will be a decrease or a surprise increase.
About the Monetary Policy Committee
The BOG Act 2002, Act 612 as amended, established the Monetary Policy Committee (MPC) to formulate the Bank of Ghana’s monetary policy.
The seven-member committee is chaired by the Governor and includes:
- The First and Second Deputy Governors
- The Head of the Department responsible for economic research
- The Head of the Department responsible for Treasury operations
- Two external members appointed by the Board with relevant knowledge and experience.
The MPC meets bi-monthly to assess economic conditions and the inflation outlook. Decisions are finalized through a vote, with each member stating their reasoning. The Monetary Policy Rate (MPR) is the primary tool used to signal the stance of monetary policy and anchor short-term market interest rates to achieve price stability. In exceptional circumstances, the MPC may also implement macroprudential policy measures. The meeting dates are published on the Bank’s website at the start of each year.
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