- Policy Rate Cut: The MPC reduced the Monetary Policy Rate by 300 basis points to 25 percent, signaling growing confidence in disinflation and economic stability.
- Inflation at a 3½‑Year Low: Headline inflation fell to 13.7 percent in June 2025, the lowest since December 2021, thanks to tight policy, a stronger cedi, and better food supplies.
- Cedi Gains Ground: The cedi has strengthened significantly, appreciating 40.7 percent against the dollar, 31.2 percent against the pound, and 24.2 percent against the euro.
- Economic Growth Accelerating: GDP expanded by 5.3 percent in the first quarter of 2025 (6.8 percent excluding oil), driven by growth in agriculture and services.
- Debt Levels Drop Sharply: Public debt declined to 43.8 percent of GDP from 61.8 percent in December 2024, helped by cedi appreciation, debt restructuring, and reduced borrowing.
- Stronger Reserves: Ghana’s reserves reached 11.1 billion dollars by June 2025, covering 4.8 months of imports, up from 8.9 billion dollars at the end of 2024.
- Banking Sector Strengthening: Banks reported improved solvency, liquidity, and profitability, while non‑performing loans eased thanks to tighter credit standards.
- Current Account Surplus: Ghana posted a record 3.4 billion dollar current account surplus in the first half of 2025, boosted by gold and cocoa exports.
- Fiscal Discipline Paying Off: The fiscal deficit narrowed to 0.7 percent of GDP, beating the 1.8 percent target and showing a strong commitment to consolidation.
- Outlook for More Cuts: The MPC hinted at the possibility of lowering the policy rate further if disinflation continues, while noting risks such as utility tariff hikes and global trade tensions.
So what?
The Bank of Ghana’s latest MPC decision sends a clear signal, the economy is turning a corner. With inflation easing, debt falling, and the cedi flexing its strength, the stage is set for a more stable financial environment.
