Inflation risks, liquidity conditions, monetary policy transmission and global oil market volatility will dominate this week’s Monetary Policy Committee (MPC) meeting of the Bank of Ghana (BoG).Dr Johnson Pandit Asiama, Governor of the BoG, outlined the four issues on Monday as he opened the committee’s 131st meeting.He said the committee would assess whether the Bank’s current policy framework remained appropriate amid changing domestic and global conditions.The MPC will examine the recent rise in inflation and inflation expectations.It will also assess the effectiveness of reforms to the cash reserve ratio framework, the impact of tighter liquidity after the termination of central bank refinancing for gold purchases, and the effects of oil market volatility on the balance of payments, reserves and the exchange rate.On inflation, Dr Asiama said the committee would weigh external commodity price pressures against possible increases in utility tariffs and transport fares.Those factors, he said, could add a domestic dimension to what began as an external shock.Regarding policy effectiveness, Dr Asiama indicated persistent rigidity of interbank rates at the lower bound of the policy corridor, which the revised cash reserve ratio framework was designed to address.On policy transmission, he said the committee would assess whether reforms to the cash reserve ratio framework had improved the alignment of short-term market rates with the policy rate. It would also consider whether further refinements were needed.Dr Asiama identified tighter domestic liquidity as another key issue.The end of central bank refinancing for gold purchases had removed a source of liquidity injection at a time of strong private sector credit growth, he said.The BoG Governor urged the committee to assess the implications for the current policy stance.It should also determine whether the balance between stabilisation and structural measures remained appropriate.Dr Asiama also pointed to renewed volatility in global oil markets.He said higher energy prices could affect Ghana’s balance of payments, reserve accumulation and exchange rate.Dr Asiama said that external buffers, disciplined reserve management and exchange rate flexibility remained essential.“Our task this week is not simply to assess the latest data; our task is to determine whether the framework that strengthened in May remain fit for the conditions now before us and whether the choices we made then continue to serve the medium-term objectives on which our credibility depends,” he said.Dr Asiama said Ghana remained resilient despite global uncertainty.He said a mid-June ceasefire briefly eased geopolitical tensions before renewed hostilities around the Strait of Hormuz pushed Brent crude above US$85 a barrel.Dr Asiama said Higher energy prices had slowed global disinflation and led some central banks to reconsider further monetary easing.“For Ghana, as both a commodity exporter and energy importer, these developments underscore the need to carefully assess how external cost pressures could influence the domestic inflation outlook,” he said.Headline inflation rose from 3.2 per cent in March to 5.3 per cent in June.Transport and haulage costs drove the increase. Inflation, however, remained within the BoG’s target band of 8±2 per cent.The economy grew by 6.4 per cent in the first quarter, up from 6.2 per cent a year earlier.The Gross Domestic Product deflator eased to 4.1 per cent.Real private sector credit growth accelerated to 34.1 per cent from a contraction of 4.5 per cent a year earlier.Dr Asiama attributed the rebound to easier domestic credit conditions.He said the exchange rate remained broadly stable through the first half of July. The banking system also remained sound and well-capitalised.However, elevated non-performing loan ratios showed that credit risks had not been fully resolved.On Ghana’s Policy Coordination Instrument programme with the International Monetary Fund, Dr Asiama said engagement on the transition would continue alongside monetary policy decisions.