BoG Lowers Policy Rate to 14%

The Bank of Ghana (BoG) has cut its policy rate by 150 basis points to 14 percent, signalling a shift toward supporting economic growth amid easing inflationary pressures.

The decision was taken at the latest Monetary Policy Committee (MPC) meeting, where members assessed both domestic gains and emerging global risks.

Inflation has continued its downward trend, falling to 3.3 percent in February 2026 from 5.4 percent in December 2025, underpinned by improved food supply, currency stability and earlier tight monetary measures.

At the same time, economic activity remains robust, with strong GDP growth, rising business confidence and improving credit conditions pointing to a sustained recovery.

The Committee indicated that these favourable conditions, alongside relatively high real interest rates, created room to ease the policy stance.

While the rate cut is expected to reduce borrowing costs and encourage private sector lending, the central bank warned that external risks—particularly rising oil prices and geopolitical tensions—could still pose threats to the inflation outlook.

BoG said it will continue to monitor developments closely and stands ready to adjust policy if necessary to maintain price stability.