BoG Warns Of Rising Inflation Risks As Middle East Crisis Deepens

Dr. Johnson Pandit Asiama warned on Monday in Accra that the escalating conflict in the Middle East is emerging as the biggest threat to Ghana's economic stability. He said the conflict and sustained energy price elevation, the convergence of domestic energy supply disruptions and external cost-push pressures risks, "if not addressed could dislodge inflation expectations before they are firmly anchored."

The Governor noted that the IMF has revised downward its 2026 global growth projection from 3.3 percent to 3.1 percent. He also disclosed that inflation has recorded its first increase since December 2024, while Ghana's economy continues to expand according to the IMF's April 2026 World Economic Outlook report. Ghana's current account surplus for the first quarter of 2026 exceeded the same period in 2025 by approximately US$652 million. The government intends to raise US$1 billion through local currency bonds to finance cocoa purchases for the 2026/2027 crop season.

Dr. Asiama confirmed that discussions have advanced toward a new 36-month non-financing Policy Coordination Instrument (PCI), which would succeed the current ECF programme. He cautioned that risks such as elevated energy prices, domestic power supply disruptions, fiscal pressures and current account vulnerabilities remain key threats to the economy and will dominate discussions during the three-day MPC meeting.