Keep interest rates high to fight inflation – IMF to BoG

The International Monetary Fund (IMF) has advised the Bank of Ghana to keep interest rates high to help keep inflation under control, even as some people call for rate cuts to boost the economy.

Speaking at a press briefing in Washington, IMF Communications Director Julie Kozack praised Ghana for making strong progress in reducing inflation. Inflation has dropped from 54% at the end of 2022 to 13.7% in June 2025.

“Going forward, it’s important for monetary policy to stay tight so that inflation continues to fall toward the Bank of Ghana’s target of 8%, plus or minus 2%,” she said.

Ghana has seen inflation drop for six straight months, from 23.8% in December 2024 to 13.7% in June 2025. Still, the Bank of Ghana’s key interest rate remains high at 28%. Some business leaders and analysts want the central bank to lower rates to support growth.

The IMF’s comments come as the Bank of Ghana begins its 125th Monetary Policy Committee (MPC) meeting today, Monday, July 28. The three-day meeting will look at inflation, exchange rates, and other economic issues.

Ghana is currently under a $3 billion IMF program designed to restore economic stability, manage debt, and promote growth.

Meanwhile, the Governor of the Bank of Ghana, Dr. Johnson P. Asiama, has stated that Non-Interest Banking and Finance (NIBF) aspires to be a transformative instrument for economic justice and inclusive prosperity.

Speaking during the Stakeholder Engagement with Members of the Clergy on Non-Interest Banking and Finance on July 25, 2025, Dr. Asiama stated, “Above all, NIBF aspires to function not merely as a commercial enterprise, but as a transformative instrument for economic justice and inclusive prosperity.”

This vision is rooted in NIBF’s core values, which challenge financial institutions to go beyond profit maximization and act as responsible stewards of social well-being.

According to the United Nations Development Programme (UNDP), “Innovative financing instruments like Sukuk Bonds are crucial for mobilizing resources to achieve the Sustainable Development Goals (SDGs) in developing economies.”

Ghana’s infrastructure stock remains insufficient, particularly in critical sectors such as transportation, energy, water and sanitation, and digital connectivity.