- Bank of Ghana’s MPC starts its 127th meeting to assess key macroeconomic trends
- Cedi remains generally stable but shows slight depreciation due to seasonal forex demand
- Inflation falls to 8%, well below the 11.9% year-end target
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) begins its 127th meeting today, November 24, 2025, with discussions expected to focus on key macroeconomic trends influencing Ghana’s ongoing economic recovery. The meeting will assess current economic conditions and offer guidance on the central bank’s policy stance for the remainder of 2025.
The Committee meets at a time when the Ghana cedi has maintained relative stability following a brief depreciation earlier in the year—an episode the BoG described as a temporary market correction. Despite this recent stability, the cedi has begun to record slight depreciation, driven partly by increased dollar demand ahead of the Christmas trading period.
Inflation continues to decline, dropping to 8 percent in October due to tight monetary policy, fiscal discipline, and improved food supply. This figure is now below the year-end target of 11.9 percent, strengthening expectations for further monetary easing.
Economic performance has also improved significantly. Real GDP growth (including oil) reached 6.3% in the second quarter of 2025, up from 5.1% in 2024. Non-oil GDP expanded by 7.8%, compared with 5.7% last year, supported by strong activity in services, construction, and agriculture.
In September, the MPC reduced the policy rate by 350 basis points to 21.5%, following an earlier 300-basis-point cut in July—from 28% to 25%—marking one of the most aggressive easing cycles in recent years. Central Bank Governor Dr. Johnson Asiama said the cuts were intended to boost credit growth and accelerate economic recovery, though he warned of lingering risks, including possible utility tariff hikes and renewed currency pressures.
With inflation at 8 percent and the real policy rate still significantly positive—around 10 percentage points above inflation—analysts believe there is room for further easing. Many expect another rate cut this month, with forecasts ranging from 100 to 250 basis points, assuming fiscal discipline holds and external risks such as commodity price fluctuations and forex market volatility remain contained.
As the cedi shows fresh signs of pressure amid seasonal demand, markets will closely monitor how the MPC balances inflation gains, economic recovery, and currency stability.
The Committee will announce its policy decision and provide an updated economic outlook at a press briefing on Wednesday, November 26, 2025.
