From May 21 to May 23, 2025, a group called the Monetary Policy Committee (MPC) met to talk about money and the economy. They all agreed to keep the Monetary Policy Rate (MPR) at 28 percent. This is like a big decision about how much it costs to borrow money.
The Bank also shared some news about the Cash Reserve Ratio (CRR), which is a rule that tells banks how much money they need to keep safe. Starting June 5, 2025, banks will have to keep this money in the same type of currency they use. This means if a bank has money in foreign currency, it has to keep that money separate from the money in the local currency.
Member 1
One member of the committee shared some important ideas. They said that the world economy isn’t doing as well as it was before. There are a lot of uncertainties, which means things are a bit shaky. This can make it harder for countries, especially those still developing, to grow and manage their money.
However, things at home are looking a bit better since the last meeting. More people are working, and businesses are feeling more positive. Some numbers show that the economy is getting stronger, but there are still some risks to watch out for.
Inflation is when prices go up, and it’s still a big worry for the committee. Even though inflation has gone down for the fourth time in a row, it’s not dropping as fast as they hoped. But there are signs that it might start to go down more quickly soon.
Here are some reasons why they think inflation might improve:
- Core inflation is still high but is starting to drop.
- People’s expectations about prices are getting better.
- There’s less demand for things, which means prices might not rise as quickly.
- The overall economic situation is improving, which helps keep prices stable.
The country’s payments situation is getting better too! There’s been a big increase in money coming in from gold exports and people sending money back home. This has helped the country save more money, which is good for the economy.
Even though inflation is still higher than they want, the committee believes it will start to go down more. Because of this, they think it’s important to keep a tight grip on money policies to help stabilize prices.
In conclusion, the member decided to keep the MPR at 28 percent to help manage inflation and support the economy.
Member 2
The world economy is a bit shaky right now because of changes in how the U.S. does trade. This has made businesses and people feel less confident, which means they’re not spending as much. Because of this uncertainty, the financial markets are acting a little wild, and it looks like big banks might keep interest rates higher than we thought. Because of all this, the International Monetary Fund (IMF) has lowered its predictions for economic growth.
In our country, inflation (which is when prices go up) has actually gone down in the first part of the year. It looks like it will keep going down, especially since our money is getting stronger compared to other currencies. This is good news! The drop in inflation is happening across the board, affecting both food and other items. Since February 2025, the price of food has dropped by 3.1 percentage points, now sitting at 25.0 percent in April 2025. Non-food prices have also gone down by 0.9 percentage points to 17.9 percent. This means we’re getting better at supplying food, and the strict money policies are helping prices drop even more.
Things are looking up for our economy! More people are feeling good about spending money, and businesses are also feeling more confident. This is partly because inflation is going down and people are hopeful about the economy getting better. Banks are starting to lend more money, which is great! The base lending rate, known as the Ghana Reference Rate, has dropped a lot to 23.9 percent in April 2025 from 29.3 percent in December 2024. This means it’s easier for people and businesses to borrow money, which can help the economy grow.
On the international front, our country is doing well thanks to strong earnings from gold and cocoa exports, plus money sent back home from people working abroad. Our international reserves are at an all-time high, enough to cover 4.7 months of imports. This is mostly from local sources and gives our economy a strong safety net against any surprises. With these strong reserves and better feelings about the economy, our currency, the cedi, has bounced back nicely this year. If we keep our strict policies and follow the rules about foreign exchange, we can keep this positive trend going.
The banking sector has been holding strong in the first part of 2025. We see good growth in bank assets and improvements in financial health. However, there are still some worries about the quality of loans, even though the number of bad loans has improved a little since the last meeting. We need to keep a close eye on risky loans and make sure banks are managing their risks well.
The Bank will keep watching banks that don’t have enough capital to ensure the banking system stays stable.
Considering everything, I think the risks to inflation and growth are pretty balanced right now, so I vote to keep the Monetary Policy Rate (MPR) at 28.0 percent.
Member 3
Since the last meeting in March 2025, not much has changed in the economy, except that our currency has gotten stronger against other major currencies. Inflation is still high, but it’s starting to go down. Here are some important points to note for this May meeting:
- Inflation is easing but is still above 20.0 percent.
- The government is sticking to its fiscal plans.
- We have more money coming in from exports and remittances.
- Rating agencies are looking at our economic progress and may change Ghana’s credit ratings.
- The IMF has made an agreement with the government about completing a review of the Economic Cooperation Framework (ECF) Program.
- Consumer and business confidence is bouncing back.
- Economic activity is improving.
- Banks are lending more money.
- Our reserves are strong at around US$10.7 billion.
- Our currency has appreciated by 24 percent against the U.S. dollar since the start of the year.
While these signs are good for the future, we need to keep the economy stable to make sure inflation continues to drop. At this meeting, I believe the risks to growth and inflation are balanced. To make sure we keep the progress we’ve made, we should watch how these changes affect inflation. So, I vote to keep the MPR unchanged at 28.0 percent.
Member 4
Recently, the U.S. made some changes to its trade rules, which has made things a bit confusing for countries around the world. This uncertainty is making it harder for the global economy to grow. Even though the U.S. and China have agreed to a temporary pause on new tariffs for 90 days, people are still worried about what will happen next. This could lead to more problems for the economy, especially since some countries are struggling with prices not going down as expected.
In our own country, things are looking a bit better! The Bank's report shows that economic activities have improved in the first part of 2025 compared to last year. More goods are being shipped from ports, exports are up, and people are buying more cement. This is a good sign that people and businesses are feeling more positive about the economy, which is great for future growth.
On the international side, our country is doing well with its trade balance. We are selling a lot of gold, which is helping us earn more money than we spend on imports. In fact, during the first four months of the year, our exports went up by 60.5%, while imports only increased by 2.7%. This means we have a big trade surplus, which is a good thing! Plus, the value of our currency, the cedi, is getting stronger, which should help keep prices from rising too quickly.
The risks in our financial system are mostly under control, but there are still some worries about loans that aren't being paid back, especially because of changes in our country's debt. Banks have a chance to give out more loans, but they need to be careful to keep their assets in good shape. Overall, the banking system is looking healthier, with better numbers in areas like solvency and profitability since the last meeting. However, some banks need to raise more money to stay strong.
Inflation, which is when prices go up, has gone down a bit this year, but it's still higher than what we want. There are some risks that could make prices go up again, like changes in utility costs and problems with food production due to climate issues. On the other hand, there are also some positive factors, like a strong currency and lower fuel prices. Because of this, I think the risks for inflation and growth are balanced, but we still need to do more to get inflation down. So, I suggest we keep the main interest rate at 28.0%.
Member 5
Another member of the team pointed out that the International Monetary Fund (IMF) has lowered its expectations for global economic growth. This is mainly because of the uncertainty caused by the U.S. changing its trade policies. The trade war could make things more expensive and hurt demand for goods. Even though the recent agreement between the U.S. and China has helped a little, the overall outlook for global growth is still not great.
On a brighter note, our country is seeing some positive changes. Economic activities have picked up in early 2025 compared to the same time last year. Reports show that businesses and consumers are feeling more confident, which is a good sign for the economy.
Our trade surplus has also improved a lot, mainly because of gold exports. The cedi has gained value recently, thanks to better reserves and smart monetary policies. This should help keep prices from rising too quickly in the future.
Member 6
In the first quarter of 2025, the government's financial performance has shown some improvements, thanks to tighter spending controls. Moving forward, it's important for the government to focus on collecting more revenue to keep strengthening our economy. Overall, while there are challenges ahead, there are also many positive signs that can help us grow!
The banking world is looking pretty stable right now! The signs show that things are getting better. A recent check-up on the economy tells us that the risks we were worried about are getting smaller. This is thanks to lower inflation (which means prices aren’t rising as fast), the cedi (our currency) getting stronger, and having a good amount of money saved up in reserves.
Even though there’s been a slight improvement in the number of loans that people aren’t paying back, we still have to be careful. There are still some risks when it comes to lending money.
This year, both the main types of inflation (headline and core) have been going down, and people are feeling less worried about prices going up in the future. The latest predictions say that inflation will keep dropping in the coming months. But here’s the catch: inflation is still pretty high compared to the goal of 12.0 percent we want to reach by the end of 2025. Because of this, we need to keep interest rates a bit higher for a while longer to help bring inflation back down to where we want it to be.
So, I think we should keep the main interest rate at 28.0 percent for now. This way, we can help make sure prices stay in check and keep the economy on the right track.