BoG flags upside risks to Ghana’s inflation outlook despite 14% policy rate

The Bank of Ghana has cautioned that the country’s inflation outlook remains exposed to several upside risks, even as the Monetary Policy Committee (MPC) maintains the policy rate at 14 percent.

Bank of Ghana Governor, Dr Johnson Asiama, said the risks include further increases in utility tariffs, rising petroleum prices and their potential impact on transport fares, a stronger US dollar, as well as possible disruptions to global supply chains.

He noted that these factors could exert additional pressure on prices in the months ahead.

The caution comes after headline inflation rose to 5 percent in August 2026, from 4.6 percent in July.

The increase was driven largely by non-food inflation, which climbed to 6.8 percent from 6.1 percent, partly reflecting the effects of utility tariff adjustments and elevated crude oil prices.

Despite the increase in headline inflation, Dr Asiama said underlying inflationary pressures had continued to moderate, with the Bank’s core inflation measure easing marginally to 4.2 percent in August from 4.3 percent in July.

According to the Governor, the inflation outlook is also supported by some offsetting factors, including continued fiscal consolidation, improved food supply conditions and relative exchange-rate stability.

Against this backdrop, the MPC unanimously maintained the monetary policy rate at 14 percent for the third consecutive meeting, assessing the balance of risks to inflation and economic growth as broadly balanced.

The Bank, however, stressed that developments in global crude oil prices, geopolitical tensions and tighter global financial conditions could continue to influence Ghana’s economic outlook.

Story by: Joshua Kwabena Smith