Ghana’s Monetary Policy Committee (MPC) has lowered the policy rate by 250 basis points, bringing the effective rate to 15.5%, the Bank of Ghana (BoG) announced today. The move reflects the committee’s assessment that inflationary pressures have eased significantly and macroeconomic stability has largely been restored.
According to the BoG Governor, headline inflation fell sharply from 23.8% in December 2024 to 5.4% in December 2025, a disinflation largely supported by tight monetary policy, fiscal consolidation, and the appreciation of the cedi. Inflation expectations among consumers, businesses, and the financial sector remain well anchored, he added.
The Governor noted that underlying inflationary pressures, as measured by the banks’ call inflation index excluding energy and utility prices, have also moderated. Growth in monetary aggregates remained moderate, reflecting the central bank’s tight policy stance over the year.
Public debt has declined to 45.5% of GDP by November 2025, down from 63.1% a year earlier, while the banking sector recorded strong performance, with improved asset quality, solvency, profitability, and efficiency. Non-performing loans improved to 18.9% in December 2025, supported by ongoing measures to resolve legacy loans and enforce strict credit standards.
The Governor highlighted that the external sector performed robustly, with a provisional current account surplus of $9.1 billion and a balance of payments surplus of $3.98 billion. Gross international reserves increased to $13.8 billion, equivalent to 5.7 months of import cover, while the cedi appreciated 40.7% against the U.S. dollar in 2025.
“With stability largely achieved, the focus of policy is now gradually shifting toward consolidating gains, supporting stronger real sector recovery, job creation, and improved financial intermediation,” the Governor said. GDP growth is expected to remain strong in 2026, with headline inflation broadly within the medium-term target, barring potential external shocks.
The MPC will continue to monitor developments closely and take appropriate measures to ensure that the gains from macroeconomic stability translate into sustainable growth.
