Ghana Delivers Another Steep Cut to Policy Rate

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.

The Bank of Ghana cut its benchmark monetary policy rate by 350 bps to 21.5% on September 17th, citing sustained disinflation, robust growth, and stronger external buffers. Headline inflation fell to 11.5% in August, the lowest level in four years. Economic activity remained strong, with real GDP expanding 6.3% in Q2 2025 and non-oil GDP rising 7.8%, supported by solid gains in agriculture and services. The external sector continued to strengthen, with a provisional trade surplus of $6.2 billion and gross international reserves of $10.7 billion by the end of August, equivalent to 4.5 months of import cover. The cedi appreciated 21% year-to-date against the US dollar, remaining among the strongest currencies globally. Despite potential risks from utility tariff adjustments, the central bank noted broadly anchored inflation expectations, improved external buffers, and growing domestic confidence, reaffirming its commitment to supporting the recovery without undermining recent gains.