The Bank of Ghana (BoG) has reduced its benchmark interest rate by 150 basis points to 14 percent, citing improved macroeconomic conditions and a sustained decline in inflation.
The decision, announced at the conclusion of the Monetary Policy Committee (MPC) meeting held from March 16 to 18, reflects growing confidence in the country’s disinflation trend and economic recovery.
Headline inflation dropped sharply to 3.3 percent in February 2026, down from 5.4 percent in December 2025, supported by easing food and non-food prices, a relatively tight monetary stance, and improved supply conditions.
The Committee noted that current economic conditions, including strong GDP growth, improved business and consumer confidence, and high real interest rates, provided room for a policy easing.
“Despite some upside risks to inflation, particularly from rising global oil prices and geopolitical tensions, the favourable domestic macroeconomic environment allows for a reduction in the policy rate,” Chairman of the Committee , Dr Johnson Asiama indicated.
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The rate cut is expected to further lower borrowing costs, support private sector credit growth, and sustain the ongoing economic recovery.
However, the central bank signalled caution, noting that it will continue to closely monitor global developments especially tensions in the Middle East and their potential impact on inflation and financial stability.
