Bank of Ghana Governor Flags Progress and Risks at 129th MPC Meeting

Bank of Ghana Governor Flags Progress and Risks at 129th MPC Meeting

By Ernest Best Anane

 Governor of the Bank of Ghana opened the 129th Monetary Policy Committee meeting on Monday, noting that economic performance has been stronger than expected but warning that rising global uncertainty demands careful judgment.

He reported headline inflation fell to 3.3% in February – the 14th straight monthly drop and now below the medium-term target. Gross international reserves rose to about US$14.5 billion (5.8 months of import cover, up from US$13.8 billion in January). The Composite Index of Economic Activity grew 8.4% year-on-year at the start of 2026, with stronger credit, industrial output, trade and consumption lifting confidence.

Despite the gains, the Governor highlighted new risks: Middle East conflict has disrupted energy and shipping corridors, fueling oil-market volatility and imported inflation risks for Ghana. He said gains from higher gold prices would only partly offset the pressure.

Key topics for the Committee include calibrating policy to geopolitical shocks, managing liquidity implications of the new Ghana Accelerated National Reserve Accumulation Programme (which targets 15 months of import cover by 2028), and assessing transmission of monetary policy as banks remain sound but credit expansion faces constraints.

Governor told members told members that the question is not whether conditions have improved, because they have. It is how we sustain progress when the global environment is less, urging a decision robust to multiple scenarios.