The policy decision-making body of the Bank of Ghana, the Monetary Policy Committee (MPC), has started its 128th meeting, with four critical decisions dominating the discussions.
The discussions are centred on maintaining foreign exchange stability, sustaining the domestic gold purchase programme and the pace and sequencing of any policy adjustment.
The six-member committee, supported by advisors, experts and other stakeholders, would also deliberate on how to safeguard data integrity ahead of the International Monetary Fund (IMF) review scheduled for April this year.
The MPC meeting, which began in Accra yesterday and is expected to end on January 28, 2026, would be followed by a press conference at which the committee’s decision on the policy rate would be announced.
The policy rate — the rate at which the central bank lends to the universal banks — currently stands at 18 per cent, and with inflation easing further to 5.4 per cent in December 2025, market expectations point to a possible reduction of up to 200 basis points.
This would enable financial institutions to lend more at cheaper rates to many segments of the economy to enhance business operations, including job creation.
Economic growth
The Governor of the BoG, Dr Johnson Pandit Asiama, said the four key policy considerations would inform the calibration of monetary policy as the committee seeks to support economic growth without compromising policy credibility.
He said that with improved macroeconomic conditions and rapid disinflation, decisions taken at the meeting must remain robust under heightened domestic and external scrutiny, including the upcoming IMF review.
“While well-coordinated monetary and fiscal policies have supported these gains, our task is to assess the durability of these policies and calibrate a policy to support growth while preserving credibility,” the Governor said.
Dr Asiama further said that the relative stability of the cedi in 2025 reflected the renewed confidence in the economy, supported by stronger external buffers, including gross international reserves of over $13.8 billion, equivalent to 5.7 months of import cover.
“The cedi has been remarkably stable in 2025, reflecting improved confidence and a strong external position, while recent pressures appear largely seasonal. Expectations will now play a central role in sustaining stability,” he said.
Gold programme
The Governor also said that the domestic gold purchase programme had been a deliberate policy instrument in strengthening the country’s external buffers.
“While the programme has played an important role in supporting stability and building reserves, members will need to consider its timing, sustainability and balance-sheet implications.
“We must carefully consider the pace and sequencing of any policy adjustment, deciding whether easing should be gradual with periodic pauses, and ensure that we communicate these decisions clearly to the markets,” he said.
Dr Asiama added that such assessments would guide the calibration of monetary policy and ongoing efforts to further strengthen reserves.
Relevance
Dr Asiama stated that the committee was among the first to rigorously assess the economic indicators central to the IMF programme’s performance.
The indicators include inflation, reserve accumulation, and adherence to zero central bank financing, along with transparent recognition of legacy and policy-mandated quasi-fiscal activities.
“At its core, this meeting is not about whether conditions have improved, because clearly they have.
The meeting is about how we respond to those improvements and ensure that the decisions we take today remain robust under scrutiny tomorrow,” he said.
The Governor added that such decisions required careful judgment, balance, and a clear focus on the committee’s mandate.
Source:
www.graphic.com.gh