Hold tight policy rate to consolidate disinflation gains – IMF to BoG

The International Monetary Fund (IMF) has advised the Bank of Ghana to maintain a tight monetary policy stance to consolidate recent gains in reducing inflation, despite growing calls for interest rate cuts.

Speaking at a press briefing in Washington, IMF Communications Director Julie Kozack acknowledged Ghana’s progress in curbing inflation, which has dropped significantly from a high of 54 percent at the end of 2022 to 13.7 percent by June 2025.

“Going forward, it will be important for monetary policy to remain sufficiently tight, consistent with bringing inflation down to the Bank of Ghana’s target range of 8 percent, plus or minus 2 percentage points,” she stated.

Ghana’s disinflation trend has continued for six consecutive months, with headline inflation falling from 23.8 percent in December 2024 to 13.7 percent in June 2025. Despite this, the Bank of Ghana’s policy rate remains at 28 percent, prompting some analysts and business leaders to advocate for rate reductions to support economic activity.

“Ghana has made good progress since the beginning of the program in reducing inflation. Inflation was extremely high at the end of 2022 at 54%. It has now come down substantially to 14% at end June 2025,” Kozack added.

The IMF’s comments come as the Bank of Ghana begins its 125th Monetary Policy Committee (MPC) meeting today, Monday, July 28. The three-day session is expected to review recent macroeconomic trends, including inflation, exchange rate stability, and developments in the financial sector.

Ghana is currently implementing a $3 billion IMF-supported Extended Credit Facility programme aimed at restoring macroeconomic stability, ensuring debt sustainability, and promoting inclusive growth.