BoG will not compromise economic recovery gains

Central Bank defers policy rate decision to July 30 after emergency review

The Bank of Ghana (BoG) has assured Ghanaians that it remains firmly committed to preserving the hard-won gains in macroeconomic stability and economic recovery, even as global and domestic challenges persist.

In a statement issued after the Bank’s emergency Monetary Policy Committee (MPC) meeting on Thursday, July 17, 2025, Governor Dr. Johnson Asiama reaffirmed the central bank’s resolve to act responsibly and proactively in its policy direction.

Emergency meeting signals heightened vigilance

The BoG convened the emergency MPC meeting to assess whether immediate policy action was required ahead of its scheduled 125th MPC meetings, which will take place from Monday, July 28 to Wednesday, July 30, 2025.

The Bank’s decision to hold off on announcing any new policy measures until the end of the regular meeting signals confidence in the current trajectory of the economy, while maintaining the flexibility to respond swiftly if necessary.

Inflation falls for 6th straight month

In its post-meeting assessment, the MPC highlighted a strengthening disinflation momentum.
Headline inflation has dropped for six consecutive months, reaching 13.7% in June 2025, a sharp decline from 23.8% recorded in December 2024.

Core inflation measures also point to a re-anchoring of inflation expectations, suggesting that recent policy interventions are yielding tangible results.

Strong economic growth in Q1 2025

Ghana’s real sector performance remains robust, with the economy expanding by 5.3% in the first quarter of 2025.

The non-oil sector grew even faster, posting a growth rate of 6.8%, driven largely by strong performance in the agriculture and services sectors.

These figures reflect a continuing recovery in domestic output, supported by improved investor confidence, a more stable macroeconomic environment, and a rebound in productivity.

Booming external sector boosts reserves

The external sector has recorded significant gains. Provisional data shows a trade surplus of $5.6 billion and a current account surplus of $3.4 billion in the first half of 2025, far surpassing the $1.4 billion trade surplus and $283.1 million current account surplus recorded during the same period in 2024.

These developments have contributed to a notable increase in Ghana’s gross international reserves, which rose to $11.1 billion at end-June 2025—equivalent to 4.8 months of import cover, compared to $8.98 billion at the end of 2024.

Cedi rebounds with 42.6% appreciation

The Ghanaian cedi has staged a strong recovery in 2025, appreciating by 42.6% against the US dollar year-to-date.

This remarkable performance is attributed to strong foreign exchange inflows from gold and cocoa exports, remittances, improved investor sentiment, and prudent monetary and fiscal policies.

The appreciation has helped to ease imported inflation and improved Ghana’s external position, boosting confidence among local and foreign investors.

Global outlook remains uncertain

Despite the strong domestic outlook, the BoG noted risks in the global environment.

Global growth is expected to slow to 2.8% in 2025, down from 3.3% in 2024, as economic momentum weakens and financial conditions remain tight.

Global disinflation is ongoing but expected to proceed unevenly, further complicating monetary policy decision-making across many emerging and advanced economies.

All eyes on July 30 policy decision

The BoG’s final decision on the monetary policy rate will be announced at the conclusion of its 125th MPC meetings on Wednesday, July 30.

Analysts expect the Bank to weigh its recent successes in stabilising inflation and the currency against the risks posed by external uncertainties and domestic vulnerabilities.

Dr. Asiama reiterated that the Bank stands ready to adjust its policy stance if macroeconomic conditions require it.