Bank of Ghana Governor Dr Johnson Asiama says oil prices above US$100 a barrel and utility tariff adjustments justified pausing rate cuts at 14%.

Published 7 Nov 2026, 06:48 GMT

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Bank of Ghana (BoG) Governor Dr Johnson Pandit Asiama has told Parliament's Committee on Economy and Development that holding the policy rate at 14 per cent from May to September 2026 protected macroeconomic stability.

Appearing at Parliament House on Friday, November 6, Asiama presented a written statement on first-half monetary policy explaining why the Monetary Policy Committee (MPC) paused rate cuts after reducing the rate from 18.0 per cent to 15.5 per cent in January and to 14.0 per cent in March.

“This was a deliberate and forward-looking decision in response to emerging inflationary risks. The escalation of the conflict in the Middle East had pushed up global crude oil prices, utility tariffs had been adjusted, and inflation had begun to edge up from its March low of 3.2 per cent,” Asiama told lawmakers.

Asiama noted that crude oil prices above US$100 per barrel, interest rate hikes by the US Federal Reserve and the European Central Bank, domestic price pressures and the potential impact of a strong El Niño posed risks to the inflation outlook.

“The Committee considered it prudent to pause the easing cycle, preserve the credibility built through the disinflation process and allow the effects of earlier policy reductions to work through the economy,” he said.

Asiama reported that real GDP expanded by 6.4 per cent in the first quarter of 2026 and 6.0 per cent in the second quarter.

The average bank lending rate fell from 27.0 per cent in June 2025 to 15.6 per cent in June 2026 alongside 41.2 per cent growth in private sector credit.

Total banking sector assets rose by 30.7 per cent to GH¢502.4 billion by June 2026, with the capital adequacy ratio at 20.4 per cent and the non-performing loans ratio falling from 23.1 per cent in June 2025 to 15.7 per cent in August 2026.

In the first half, Ghana posted a US$8.81 billion trade surplus and a US$5.1 billion current account surplus. Gross international reserves were US$12.94 billion (5.0 months of import cover) at end-June and US$12.05 billion (4.5 months) by September 22.

Asiama also highlighted a uniform 20 per cent domestic-currency cash reserve ratio introduced on June 4, a rules-based foreign exchange framework, and the Ghana Accelerated National Reserve Accumulation Programme (GANRAP) targeting 15 months of import cover by 2028.

Araba IncoomAraba Incoom writes on multiple topics with a vast knowledge across different sector. You can almost call me an AI, after all, my initials are Araba Incoom.

14% policy rate from May to September protected stability – BoG Governor tells Parliament

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