Monetary Policy Committee of BoG begins meeting today; cedi performance high on the agenda

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) will meet today. This is their 124th meeting to review the country's macroeconomic developments. The current policy rate stands at 28.0%.

This meeting comes as the cedi performs well against the US dollar. Since January 1, 2025, it has appreciated by 17.17%. As of May 19, 2025, the cedi was trading at GH¢12.23 per dollar in the interbank market.

The committee will discuss how to maintain these gains while reducing inflation. Inflation slowed slightly to 21.2% in April from 22.4% in March.

According to the Ghana Statistical Service, this reduction was due to lower food and non-food inflation compared to last year.

Some economists are concerned about the rapid appreciation of the cedi. They warn that it could harm the economy in the long run.

Observers believe a gradual appreciation is better for economic stability. It helps avoid disruptions that may affect revenue inflows.

The committee will also consider how sudden cedi appreciation impacts export receipts. The Bank of Ghana has stated it has enough reserves and won't deplete them to support the currency.