Four out of six members of the Bank of Ghana’s Monetary Policy Committee (MPC) voted in favour of a 150 basis point reduction in the policy rate to 14.0%, according to the Committee’s latest decision report.
The report shows that while the majority supported a significant cut, one member opted for a more moderate 75 basis point reduction, and another preferred to keep the rate unchanged at 15%.
The decision reflects differing views within the Committee, largely shaped by concerns about global economic developments, particularly tensions in the Middle East and their potential impact on inflation.
Some members highlighted downside risks to inflation forecasts, pointing to rising international crude oil prices and the likelihood of higher domestic fuel costs. However, they noted that these pressures could be mitigated by sustained fiscal discipline, relatively tight monetary policy, and exchange rate stability.
Others expressed caution about the broader economic implications of geopolitical developments, including potential effects on inflation, economic growth, utility tariffs, and the cost of credit.
One member acknowledged that while there was a strong case for easing monetary policy, existing upside risks to inflation called for a measured and calibrated approach rather than an aggressive rate cut.
Despite the differences in voting preferences, the report indicates a general consensus among members on the need to balance economic support with vigilance against inflationary pressures.
