Monetary policy must remain tight to meet inflation target – IMF to Ghana

The International Monetary Fund (IMF) has urged the Bank of Ghana (BoG) to maintain a tight monetary policy stance to help bring inflation within its target range and consolidate recent economic progress.

At a press briefing in Washington, IMF Communications Director Julie Kozack commended Ghana’s strides in reducing inflation. She noted that inflation, which peaked at 54 percent at the end of 2022, had fallen significantly to 13.7 percent as of June 2025.

“Going forward, it will be important for monetary policy to remain sufficiently tight, consistent with bringing inflation down to the Bank of Ghana’s target range of 8 percent, plus or minus 2 percentage points,” she stressed.

‎The Bank of Ghana currently maintains a policy rate of 28 percent, even as inflation has declined steadily for six straight months—from 23.8 percent in December 2024 to 13.7 percent in June 2025.

‎According to Citinews, Kozack noted that Ghana has made good progress under the IMF-supported economic programme aimed at stabilizing the economy.

The $3 billion Extended Credit Facility with the IMF seeks to restore macroeconomic balance, control debt, and ensure inclusive growth.

‎Her comments come as the Bank of Ghana begins its 125th Monetary Policy Committee (MPC) meeting today, July 28, to assess economic trends and decide the next policy direction.

The meeting will focus on inflation, the exchange rate, and the broader financial sector.