Bank of Ghana Cuts Policy Rate to 21.5% Amid Inflation Decline

The Bank of Ghana’s (BoG) Monetary Policy Committee (MPC) has lowered its benchmark policy rate by 350 basis points to 21.5%, citing a steady decline in inflationary pressures.

This marks the second major rate cut in 2025, as the central bank moves to stimulate credit growth and bolster economic recovery, despite lingering threats to currency stability and risks associated with proposed upward adjustments in utility tariffs.

In July 2025, the policy rate was reduced by 300 basis points from 28% to 25%, following a marginal hike in March from 27% to 28%. The rate was kept unchanged during the May 2025 meeting. Reuters+1

Governor of the Bank, Dr. Johnson Asiama, speaking at the conclusion of the 126th MPC meeting on Wednesday, September 17, 2025, said the decision was informed by expected gains from ongoing fiscal consolidation and anticipated sound monetary reforms. He noted that the cut was approved by a majority of MPC members.