The Bank of Ghana (BoG) has indicated that its recent reduction of the policy rate is expected to improve credit conditions and strengthen financial intermediation, supporting both households and businesses across the country.
Speaking at the MPC briefing, the BoG Governor said, “Policy rate easing is expected to support credit conditions and strengthen financial intermediation,” highlighting that the move is designed to ensure that macroeconomic stability translates into sustainable growth.
The cut comes after headline inflation fell sharply from 23.8% in December 2024 to 5.4% in December 2025, supported by tight monetary policy, fiscal consolidation, and cedi appreciation.
The Governor noted that the banking sector remains robust, with total assets increasing last year, non-performing loans improving from 19% in November 2025 to 18.9% in December, and key financial soundness indicators pointing to solvency, profitability, and efficiency. Ongoing policy measures, including resolution of legacy loans and strict credit underwriting, are expected to further strengthen asset quality.
The MPC’s 250-basis-point reduction, bringing the policy rate to 15.5%, is also aimed at facilitating real sector recovery, job creation, and improved lending to priority sectors such as agriculture and manufacturing.
With macroeconomic stability largely achieved, the Governor emphasized that the BoG will continue monitoring inflation expectations, credit growth, and external sector developments to ensure gains are preserved.
The policy easing could encourage more borrowing, lower financing costs, and stimulate investment, especially in sectors that had been constrained by high lending rates.
The Governor added that the central bank is prepared to adjust policy as needed to safeguard financial stability while promoting inclusive growth.
