Ghana Delivers Another Steep Cut to Policy Rate

The Bank of Ghana cut its benchmark interest rate by 150bps to 14% in its March 2025 decision, a fifth consecutive rate cut to mark the loose return to borrowing costs from the period before the Russian invasion of Ukraine triggered a global inflation shock. The cut contrasted slightly with the market consensus of a softer 100bps cut, reflecting policymakers' greater priority of addressing growth concerns despite upside risks to inflation. Headline inflation recently slowed to a 25-year low of 3.3% in February, but base effects and a surge in global energy prices triggered by the war in the Persian Gulf are likely to trigger some traction in price growth. On the other hand, the surge in gold prices last year increased the foreign exchange influx into Ghana, limiting the pressure that the Central Bank faces to defend the cedi and adding some leeway for lower policy rates.

The Bank of Ghana cut its policy rate by 250 basis points to 15.5% at its first meeting of 2026, taking borrowing costs to their lowest level since February 2022. Governor Johnson Asiama said headline inflation is expected to move close to the medium-term target of 8.0%, while economic growth is projected to remain strong in 2026. Ghana’s inflation rate fell to 5.4% in December, its lowest since July 2022, marking the 12th straight month of disinflation. The central bank said it will continue to monitor developments closely and take appropriate policy action to ensure that the gains from macroeconomic stability translate into sustainable growth.

The Bank of Ghana trimmed its benchmark monetary policy rate by another 350 bps to 18% on November 26, 2025, marking the third consecutive rate reduction this year. Policymakers cited an improved macroeconomic outlook and expectations of a continued decline in inflation. Ghana's annual inflation rate fell to an over four-year low of 8% in October 2025, marking the tenth consecutive period of deceleration and aligning with the mid-point of the central bank’s 6%–10% target band. "Inflation has eased faster than we anticipated, and is likely to settle between 4% and 6% by year's end before stabilizing around the target band in 2026,” said Governor Johnson Asiama. Meanwhile, economic growth for the year is projected to remain solid.