Ghana keeps rate at 14% amid Middle East oil risks; Nigeria holds MPR at 26.5%
The Bank of Ghana held its benchmark interest rate at 14% after its Monetary Policy Committee meeting in Accra on Wednesday, citing rising inflation risks from Middle East tensions that have pushed up oil and fertiliser prices. Governor Johnson Asiama said the stance remains appropriate to guide inflation toward the 6-10% target band while assessing geopolitical developments. Ghana's annual inflation rose to 5.3% in June, up from 3.7% in May, and foreign reserves fell to $12.9 billion, enough for about five months of imports.
The decision mirrors Nigeria's move, where the Central Bank of Nigeria kept the Monetary Policy Rate at 26.5% amid similar global uncertainties. Nigeria's headline inflation eased slightly to 15.91% in June from 15.93% in May, though food inflation rose month-on-month to 3.75%.
For Nigerians, the synchronized caution signals that borrowing costs are likely to stay high across the region, affecting import costs, loan repayments and investment plans. With Ghana's reserves covering roughly five months of imports and the economy still projected to grow around 6% this year, prolonged Middle East instability could weigh on that outlook.
Given both central banks are holding rates steady, will you adjust your budget or business plans for potentially higher import costs, or wait for clearer signs that inflation pressures are easing?