Bank of Ghana Plans to Reduce Liquidity Mop‑Up in 2026

Bank of Ghana signalled it will cautiously scale back its liquidity mop‑up programme next year, provided inflation and exchange‑rate pressures stay contained through 2026.

The Central Bank disclosed the plan in a question‑and‑answer document released after the Monetary Policy Committee meeting that lowered the policy rate by three hundred fifty basis points to eighteen per cent.

“Any scaling‑back will be done so cautiously and only as macro‑economic conditions permit,” a Bank of Ghana spokesperson said, adding that confidence remains high in the disinflation path and ongoing fiscal discipline.

The Bank explained that future rate decisions will be guided by key indicators such as inflation forecasts, core inflation trends, GDP growth, exchange‑rate movements, money‑supply dynamics, commodity prices and balance‑of‑payments developments.

According to the statement, this data‑driven approach “will aim to ensure that headline inflation remains within the medium‑term target band of eight ± two per cent while supporting macroeconomic stability.”

When asked about easing policy against the IMF’s call for a tight stance, the Bank argued that easing does not automatically translate into a loose stance. It maintained that the recent cuts “are therefore fully consistent with the IMF’s recommendation to maintain a tight monetary policy stance.”

Calls to review the eight ± two per cent inflation target were dismissed. “Inflation has been at target for only two months—far too short to justify such a review,” the spokesperson noted, stressing that a longer period of anchored inflation would be needed before any joint decision with fiscal authorities to lower the target.

Regarding open‑market operations in 2026, the Bank said it is prepared to ease liquidity absorption only if inflation and exchange‑rate conditions remain stable, emphasizing that keeping inflation expectations anchored remains a priority.

The central bank’s cautious roadmap signals a continued focus on price stability while gradually normalising market liquidity, a balance that will shape Ghana’s economic outlook in the coming years.

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