BoG’s Monetary Policy Committee convenes amid strong cedi performance

The Monetary Policy Committee (MPC) of the Bank of Ghana begins its 124th meeting today to assess recent macroeconomic trends and decide on key policy actions, including the benchmark interest rate, which currently stands at 28.0%.

The meeting comes as the Ghana cedi records one of its strongest performances in recent years, appreciating by 17.17% against the US dollar since the start of 2025.

As of Monday, May 19, the cedi was trading at GH¢12.23 to the dollar on the interbank market, its highest level in over two years, according to official Bank of Ghana data.

Topping the MPC’s agenda will be strategies to sustain the cedi’s gains while keeping inflation in check.

Inflation slowed slightly in April 2025 to 21.2%, down from 22.4% in March, driven by declines in both food and non-food prices, according to the Ghana Statistical Service.

While the currency’s appreciation has been welcomed by many, some economists warn that the pace of the rally could pose risks to the economy, particularly for exporters and revenue mobilisation.

They argue that a more gradual appreciation would provide a healthier balance for economic stability.

The MPC is also expected to examine potential shocks from the cedi’s sudden rise, especially its impact on export earnings and trade flows.

The Bank of Ghana has indicated it has sufficient reserves and does not intend to deplete them to defend the currency, suggesting confidence in the underlying fundamentals supporting the cedi’s strength.

The committee’s decision, expected at the end of the meeting, will signal the central bank’s next steps in navigating the delicate balance between currency stability, inflation control, and economic growth.