Audio By Carbonatix
Professional services firm Deloitte has raised concerns about the high Non-Performing Loans (NPLs) in the country, saying it remains a key risk to the banking sector.
In its commentary on the Bank of Ghana’s policy rate cut, it expressed worry about the possible resurgence in inflationary pressures due to the pass-through effect of higher crude oil prices and ongoing geopolitical tensions
“Although asset quality has improved, the NPL ratio of 18.7% remains a key risk to the banking sector. Possible resurgence in inflationary pressures due to the pass-through effect of higher crude oil prices and ongoing geopolitical tensions".
In March 2026, the Bank of Ghana held its 129th Monetary Policy Committee meeting and reduced the monetary policy rate by 150 basis points to 14.0%. The decision reflected continued improvements in Ghana’s domestic macroeconomic conditions, including stronger growth, easing inflation, improved financial sector indicators, and a stronger external position.
The Committee highlighted stronger macroeconomic conditions, including robust domestic economic activity, with real GDP growth at 6% in 2025, a sustained decline in inflation to 3.3% in February 2026 and a slowdown in monetary aggregates, following the 0.5% contraction in reserve money in February 2026. Additionally, the external sector has remained resilient, with the external reserves rising to US$14.5 billion in February 2026.
Deloitte said real returns on investment remain positive due to the wide inflation-interest rate differential.
Additionally, a strong fiscal and external position gives the government greater room to absorb future shocks, though global risks remain.
However, there is a risk of capital outflows as interest rates fall.
Similarly, there is a possible resurgence of local currency volatility if the banking sector liquidity increases.
The MPC, chaired by Governor Dr. Johnson Asiama, concluded that it will continue to closely monitor developments in the Middle East and the potential implications on the inflation outlook and overall price stability.
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