Bank of Ghana defers immediate policy action amid signs of economic stabilization

Edited By: Safae Fathi

Ghana’s central bank announced on Friday that it had decided to defer any immediate policy action during an emergency Monetary Policy Committee (MPC) meeting held the previous day. The bank stated that the committee would wait until its regular meeting, scheduled from July 28 to 30, to make a formal decision. The move comes amid signs of stabilization in key macroeconomic indicators following the country’s worst economic crisis in decades.

The Bank of Ghana highlighted progress in several areas, noting that inflation expectations are broadly anchored, external reserves have improved, and investor confidence is gradually returning. The Cedi has gained over 40% against the US Dollar since the beginning of the year, and inflation in June reached its lowest level since December 2021. First-quarter growth accelerated, and the external sector showed strong performance, contributing to the ongoing economic recovery. The bank reaffirmed its commitment to support this recovery without undermining the gains already made.

Despite these improvements, the central bank cautioned that the global economic environment remains uncertain, with slowing growth momentum and continued tight financial conditions worldwide. Ghana, which secured a $3 billion bailout from the International Monetary Fund in 2023, continues to navigate complex domestic and external challenges. The upcoming MPC meeting is expected to provide a clearer direction for monetary policy amid efforts to consolidate economic stability and build resilience.