The Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, has stated that ongoing geopolitical tensions in the Middle East have slowed the central bank's efforts to lower domestic interest rates to single-digit levels.

Speaking at the Ghana-UK Investment Summit 2026, Dr Asiama explained that the Middle East crisis has generated global market uncertainties, which are affecting inflation expectations and monetary policy decisions worldwide, including in Ghana.

He noted that while the Bank of Ghana had anticipated a faster pace of monetary easing due to declining inflation, external shocks related to global energy prices, shipping costs, and supply chain disruptions have complicated the economic outlook.

The Governor emphasised that despite recent improvements in Ghana's macroeconomic indicators, policymakers must remain cautious to preserve price stability. However, he indicated that the central bank remains open to resuming policy rate cuts if global conditions improve.

"If developments in the Middle East normalise, it could create room for further easing of the policy rate," Dr Asiama stated, reiterating the bank's objective of supporting economic growth while controlling inflation.

The Bank of Ghana has maintained a tight monetary policy stance in recent years to stabilise the economy and curb inflation.

While recent stability in the exchange rate and easing inflation had heightened business expectations for lower borrowing costs, the Governor's remarks suggest that further monetary easing will depend on the subsidence of these external risks.