Ghana Central Bank Cuts Policy Rate to 15.5% as Inflation Tumbles
Ghana’s Monetary Policy Committee has cut the benchmark policy rate by 250 basis points to 15.5 percent, citing sharply lower inflation and improving macroeconomic stability, the Bank of Ghana announced on Monday.
The central bank said inflationary pressures have eased faster than anticipated, creating room for a measured policy adjustment after a prolonged period of tight monetary conditions. Headline inflation fell to 5.4 percent in December 2025, from 23.8 percent a year earlier, supported by fiscal consolidation, restrictive monetary policy and a stronger cedi.
Governor of the Bank of Ghana said inflation expectations across households, businesses and the financial sector remain well anchored, while underlying inflation — excluding energy and utility prices — has continued to moderate. Growth in monetary aggregates has also remained contained, reflecting the central bank’s disciplined policy stance.
The easing comes against a backdrop of improving public finances. Public debt declined to 45.5 percent of GDP by November 2025, from 63.1 percent a year earlier, while the banking sector recorded stronger asset quality, profitability and solvency. Non-performing loans fell to 18.9 percent in December, aided by efforts to resolve legacy exposures and tighter credit standards.
External sector performance strengthened markedly over the year. Ghana posted a provisional current account surplus of $9.1 billion and a balance of payments surplus of $3.98 billion. Gross international reserves rose to $13.8 billion, equivalent to 5.7 months of import cover, while the cedi appreciated by 40.7 percent against the US dollar in 2025.
The central bank said it will continue to assess incoming data to ensure that the recent gains in stability are preserved while supporting a sustained recovery in economic activity.
