Monetary policy must remain tight to meet the inflation target- IMF advises BoG.

The International Monetary Fund (IMF) has urged the Bank of Ghana (BoG) to keep its monetary policy tight in order to bring inflation within its target range and sustain recent economic gains.

Speaking at a press briefing in Washington, IMF Communications Director, Julie Kozack praised Ghana’s progress in reducing inflation. She said inflation, which stood at a high 54 percent at the end of 2022, has dropped sharply to 13.7 percent by 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.