BoG Makes Biggest Policy Rate Cut in Years as Inflation Cools

The Bank of Ghana has delivered its most aggressive policy rate cut in years, slashing the benchmark interest rate by 300 basis points from 28% to 25%, in a decisive move to support economic recovery.

Governor Dr. Johnson Asiama announced the cut at the 125th Monetary Policy Committee (MPC) press briefing in Accra, pointing to sustained disinflation and improved macroeconomic fundamentals.

“Headline inflation has continued to decline, and the broader economic environment shows signs of stability,” Dr. Asiama stated. Ghana’s inflation rate currently stands at 13.7%, down sharply from previous highs.

The rate cut is expected to ease borrowing costs for businesses and consumers, potentially unlocking greater access to credit and stimulating private sector investment. Analysts have welcomed the move as a sign of growing confidence in the country’s economic outlook and a supportive step for the ongoing recovery.

Market watchers say the decision reflects the Central Bank’s belief that inflation is on a sustainable downward path, supported by relative currency stability and better fiscal discipline.

The MPC indicated it will continue monitoring inflation trends closely and make further policy adjustments as necessary to maintain price stability.