IMF Urges Bank of Ghana to Stay the Course on High Interest Rates Amid Inflation Gains

The International Monetary Fund (IMF) has advised the Bank of Ghana (BoG) to maintain a tight monetary policy stance in order to safeguard recent progress in reducing inflation. During a press briefing in Washington, IMF Communications Director Julie Kozack emphasized that although inflation in Ghana has dropped significantly, continued policy discipline is crucial to achieve the central bank’s long-term inflation target.

Ghana has witnessed a steady decline in inflation for six consecutive months, falling from 23.8% in December 2024 to 13.7% in June 2025. This trend marks a significant improvement from the peak of 54% at the end of 2022. Despite these gains, the BoG’s policy rate remains at a high 28%, sparking debate among analysts and business leaders who believe rate cuts could stimulate economic activity.

Kozack, however, reinforced the need for cautious monetary policy, stating that further easing could undermine the disinflation momentum. She noted that inflation needs to be brought closer to the BoG’s medium-term target of 8% (±2%), and that loosening monetary conditions prematurely could reverse hard-won progress.

The IMF’s recommendation comes just as the Bank of Ghana begins its 125th Monetary Policy Committee (MPC) meeting, expected to review inflation trends, exchange rate performance, and financial sector health. Ghana is currently under a $3 billion IMF-supported Extended Credit Facility programme aimed at restoring macroeconomic stability, achieving debt sustainability, and fostering inclusive growth.

Source: Citi newsroom