The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has unanimously decided to maintain the Monetary Policy Rate (MPR) at 14 percent, citing rising external risks to inflation despite continued strength in the domestic economy.

Announcing the decision at the conclusion of the 131st MPC meeting, the Committee said recent inflation developments remain broadly in line with its forecasts, although headline inflation increased in June due mainly to temporary factors.

According to the MPC, inflation has edged closer to the lower bound of the Bank's medium-term target range, driven largely by base effects. While inflation expectations and core inflation have risen, they remain broadly anchored within the target band.

The Committee noted that its July inflation forecast remains largely unchanged from the previous MPC round, with headline inflation expected to rise gradually back into the target range over the coming months.

However, policymakers warned that several upside risks could put pressure on prices. These include possible adjustments in utility tariffs and escalating geopolitical tensions in the Middle East, which have already pushed crude oil prices higher and increased uncertainty in global markets.

On the domestic front, the MPC said economic activity remains resilient, supported by strong private sector credit growth, improving business and consumer confidence, and favourable financing conditions. The Committee also highlighted improvements in Ghana's trade balance and adequate international reserve buffers, which it said would strengthen the economy's ability to withstand external shocks.

The Bank added that continued fiscal consolidation and an appropriately calibrated monetary policy stance should help contain inflationary pressures and support macroeconomic stability.

"Given these considerations, the Committee, by a unanimous decision, maintained the Monetary Policy Rate at 14 percent," the Governor announced.

The decision means the Bank is keeping its benchmark interest rate unchanged as it balances the need to support economic growth while remaining vigilant against emerging inflationary risks from the global environment.