The Bank of Ghana has made its steepest interest rate cut in years, slashing the benchmark policy rate by 300 basis points, from 28% to 25%.
Announcing the decision at the 125th Monetary Policy Committee (MPC) press briefing in Accra, Central Bank Governor Dr Johnson Asiama said the historic reduction reflects sustained progress in Ghana’s macroeconomic environment and a steady drop in inflation.
Headline inflation now stands at 13.7%, marking a significant decline that the Governor attributed to tighter policy coordination between monetary and fiscal authorities.
“This decision reflects our confidence in the disinflation process and improving economic fundamentals,” Dr Asiama said.
The substantial rate cut is expected to ease borrowing conditions, reduce the cost of credit for businesses and consumers, and potentially energise private sector investment. It also signals the central bank’s intent to support economic recovery, while maintaining vigilance over inflation trends.
Analysts view the move as a strong endorsement of the country’s economic progress, noting that sustained currency stability and prudent fiscal management have created room for monetary easing.
The MPC reaffirmed its commitment to monitoring inflationary developments and adjusting the policy stance as needed to anchor price stability.
