Bank of Ghana Governor, Dr. Johnson Asiama, has revealed that developments in the Middle East and news of a peace deal being reached will influence Ghana’s inflation outlook going
The report indicates that bank of Ghana Governor, Dr. Johnson Asiama, has indicated that developments in the Middle East and news of a peace deal being reached will influence Ghana’s inflation outlook going forward.
It further notes that the Governor noted that “clearly, the outlook has now changed, and we are monitoring events in the coming days and weeks until the next meeting of the Monetary Policy Committee.”
Dr. Asiama made the disclosure during a post-Monetary Policy Committee (MPC) meeting with Heads and Managing Directors of commercial banks at the Bank of Ghana headquarters.
The meeting forms part of the Bank’s bi-monthly engagements with heads of banks to “frankly deliberate.”
According to the Governor, “These engagements have become an important platform for open and candid dialogue, towards building a resilient and inclusive financial system.”
The Governor also noted that these developments will clearly influence discussions and deliberations at the next Monetary Policy Committee meeting.
Dr. Asiama further indicated that the decision taken at the last MPC meeting to maintain the policy rate at 14 percent was influenced by the fact that, at the time, “risk to inflation and growth were broadly balanced and we thought that that things might change going forward.”
The Bank of Ghana Governor had earlier indicated in an interview with Bloomberg that developments in the Middle East would influence the Bank’s policy rate stance in the coming months.
He added that there could be a return to the easing cycle for the policy rate if developments in the Middle East normalise quickly.
At its last Monetary Policy Committee meeting, the Bank of Ghana amended the dynamic Cash Reserve Ratio to a uniform ratio of 20 percent, to be maintained in domestic currency. The directive took effect on June 4, 2026.
Speaking to Joy Business on PM Express Business Edition in May 2026, the Chief Executive Officer of the Ghana Association of Banks, John Awuah, expressed concerns about the new directive.
Mr. Awuah noted that the review could affect lending, the cost of credit, and even deposits.
He also argued that the proposal, as it currently stands, may present challenges for commercial banks in holding customer deposits in both cedis and foreign currencies.
However, at today’s engagement with the Managing Directors and heads of commercial banks, the Bank of Ghana Governor stated the committee took the decision because it wanted to enhance the effectiveness of liquidity management within the banking system.
