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The International Monetary Fund (IMF) has advised the Bank of Ghana (BoG) to proceed cautiously with any further reduction in the policy rate, stressing that future monetary easing must remain gradual and firmly anchored on economic data.
The recommendation was contained in the IMF’s latest Staff Review of Ghana’s bailout programme, which assessed recent macroeconomic developments and policy actions.
“With inflation pressures subsiding and the recent appreciation of the cedi, the Bank of Ghana has appropriately begun a cautious monetary easing cycle. Any further easing should remain gradual and data dependent,” the Fund stated.
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Since January 2025, the BoG has reduced the policy rate by a cumulative 9.0 percentage points, bringing it down to 18.0 per cent. The IMF acknowledged the move as appropriate, given improving inflation dynamics and exchange rate stability, but cautioned against overly aggressive cuts that could undermine recent gains.
The Fund also highlighted ongoing collaboration between the BoG and IMF in strengthening the foreign exchange market.
According to the report, a new structured foreign exchange operations framework has been developed and implemented to better intermediate FX flows, smooth excessive market volatility and support the accumulation of international reserves.
On financial sector stability, the IMF commended Ghanaian authorities for taking decisive steps to safeguard the banking system. These include the restructuring and reform of state-owned banks, closing gaps in the crisis management and resolution framework, and adopting a multi-pronged strategy to reduce non-performing loans.
“The authorities have taken decisive steps to safeguard financial stability,” the Fund noted, adding that these measures are critical to restoring confidence in the financial system and supporting economic recovery.
The IMF further observed that Ghana has made important progress in strengthening governance and improving public sector efficiency, in line with the recently published Governance Diagnostic Assessment report.
However, it stressed that efforts to enhance transparency and oversight must continue, particularly in relation to public disclosure requirements and the management of state-owned enterprises in the gold, cocoa and energy sectors.
Looking ahead, the Fund underscored the importance of ambitious structural reforms to unlock Ghana’s growth potential. It said creating a more conducive environment for private sector investment, alongside stronger governance and transparency, remains essential to boosting productivity and delivering sustainable job creation.
The IMF’s guidance comes at a time when Ghana is seeking to consolidate macroeconomic stability while supporting growth, with policymakers balancing the need for easing financial conditions against the risks of reigniting inflationary pressures.
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