Ghana continues to hold the third-highest monetary policy rate in Sub-Saharan Africa, even after cumulative rate cuts totaling 7.5 percentage points this year, according to the World Bank’s October 2025 Africa’s Pulse Report.
The report places Ghana’s benchmark interest rate at 21.5 percent, trailing only Nigeria (27%) and Malawi (26%), despite a series of reductions by the Bank of Ghana (BoG) aimed at consolidating disinflation gains and maintaining macroeconomic stability.
In September, the central bank’s Monetary Policy Committee (MPC) announced a 350-basis-point cut, marking the lowest policy rate since October 2022.
This signals growing optimism about Ghana’s economic trajectory, with inflation trending downward, external buffers strengthening, and growth momentum sustained across key sectors.
However, the World Bank noted that Ghana’s monetary conditions remain relatively tight compared to regional peers.
Countries such as Kenya, Mozambique, Lesotho, and South Africa have moved further into their easing cycles, while others like Rwanda and Uganda have maintained stable policy rates for several months.
“While Ghana’s monetary stance reflects the authorities’ commitment to price stability, the pace of easing remains cautious compared to other African economies,” the report observed.
Importantly, BoG’s gradual approach supports, a long-term stability helps anchor inflation expectations, but a more aggressive easing cycle could help reduce lending costs, stimulate private sector investment, and improve trade competitiveness.
The World Bank cautioned that global headwinds, including commodity price volatility, uncertainty in advanced economies, and tight global financial conditions, could delay broader monetary normalization across the continent.
Nevertheless, it said countries like Ghana, which have credible policy frameworks and improving inflation dynamics have the flexibility to loosen monetary conditions without undermining macroeconomic stability.
The Bank of Ghana is therefore expected to maintain a cautious stance in the near term, balancing the need to support economic growth with its mandate to preserve price and exchange rate stability.
Ghana began its policy rate cuts in early 2025 following significant progress in taming inflation, which had surged above 50 percent in 2023 but has since eased into the mid-teens.
The easing cycle has been part of broader efforts to boost investor confidence and lower the cost of credit for businesses and households.
Despite these gains, Ghana’s commercial lending rates remain among the highest in the region, averaging over 30 percent, a situation that continues to constrain access to credit for small and medium-sized enterprises (SMEs).
However, further rate adjustments will depend on inflation consistency, foreign reserve levels, and global monetary trends, particularly moves by the U.S. Federal Reserve and the European Central Bank.
