The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) begins its 127th meeting today, November 24, 2025, with discussions expected to centre on key macroeconomic developments shaping the country’s recovery trajectory.
The meeting will review current economic conditions and signal the central bank’s policy direction for the final weeks of 2025.
The Committee convenes at a time when the Ghana Cedi has experienced relative stability after a brief depreciation earlier in the year – an episode the central bank described as a market correction rather than a reversal in the currency’s overall trend.
Despite this stability over the past few months, the Cedi has begun showing marginal depreciation, partly driven by heightened demand for dollars ahead of the Christmas trading season.
Inflation has also continued its downward path. Consumer inflation fell to 8 percent in October, driven by sustained tight monetary policy, fiscal consolidation, and improved food supply conditions.
The rate is now below the year-end target of 11.9 percent, strengthening calls for further monetary easing.
Also, Ghana’s economic performance has shown notable improvements. Real GDP (including oil) expanded by 6.3% in the second quarter of 2025, up from 5.1% in 2024.
Non-oil GDP grew by a stronger 7.8%, compared to 5.7% recorded in 2024, reflecting sustained activity in services, construction, and agriculture.
In September, the MPC cut the benchmark policy rate by 350 basis points to 21.5%, citing a sustained decline in inflationary pressures.
This followed another major cut in July, when the rate was reduced by 300 basis points from 28% to 25%, marking one of the most aggressive easing cycles in recent years.
Governor of the Central Bank, Dr. Johnson Asiama said the earlier cuts were aimed at stimulating credit growth and supporting economic recovery though he cautioned that risks remain elevated, especially with potential utility tariff adjustments and ongoing currency pressures.
With inflation now at 8 percent and the real policy rate still significantly positive hovering about 10 percentage points above headline inflation, market analysts see room for more easing. Many expect the MPC to deliver another rate cut this month, supported by favourable base effects and improved inflation dynamics.
Forecasts from some economists point to a potential 100 to 250 basis point reduction, provided fiscal discipline is maintained and external shocks—particularly from global commodity prices and forex market volatility remain in check.
With the Cedi showing signs of weakening amid seasonal forex demand, markets will be closely watching how the MPC balances economic recovery with currency stability.
The MPC’s deliberations will conclude with a press conference on Wednesday, November 26, 2025, where the central bank will announce its policy rate decision and provide its latest assessment of the economic outlook.
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