BoG’s MPC Convenes 124th Meeting Amid Cedi Stability and Inflation Watch_Ghana

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has commenced its 124th meeting to evaluate the country’s macroeconomic performance and set the direction for future monetary policy. The gathering is taking place at a time when the Ghanaian Cedi has shown recent strength against the US dollar and policymakers are focused on containing inflation.

This meeting follows the MPC’s previous decision to hike the monetary policy rate by 100 basis points to 28 percent. BoG Governor, Dr. Johnson Asiama, stated that the increase aimed to support the ongoing disinflation process and maintain price stability. The central bank’s move reflected concerns about persistent inflationary pressures and the need to solidify market confidence.

Market analysts predict that the BoG may choose to maintain the current policy rate, citing a cautious stance in response to earlier tightening. Institutions like Databank Research anticipate that the Committee will likely adopt a wait-and-see approach as it assesses the outcomes of previous decisions and monitors inflationary trends.

Inflation is expected to decline further, with projections placing it between 17% and 19% by mid-2025. This outlook is based on anticipated base effects, stable domestic prices, and the assumption of minimal shocks to the economy. Analysts are also encouraged by the recent stabilization of the Cedi, which contributes to improving investor sentiment.

The MPC’s decision will have significant implications for borrowing costs, investment activity, and broader economic confidence. The Committee is set to announce its decision and policy direction during a press briefing scheduled for Friday, May 23, 2025.

Source: Citi newsroom