Bank of Ghana Cuts Policy Rate by 350 Basis Points to 18% as Inflation Falls
The Bank of Ghana has lowered its Monetary Policy Rate by 350 basis points to 18 percent. This is one of the largest cuts in recent years.
The policy rate reduction, announced on Wednesday, November 26, 2025, follows sustained progress in lowering inflation, stabilizing the cedi, and strengthening overall macroeconomic conditions. According to the Central Bank, these gains have created enough room to support economic growth through lower borrowing costs.
After the Monetary Policy Committee (MPC) meeting, Governor Dr. Johnson Asiama spoke to the media. He said the latest assessment shows the economy is now more stable. This improvement is due to a strong recovery in the external sector.
“The Bank projects a continued stable inflation profile around the target and well into the first half of next year, 2026. Current risks that could shift the path of inflation away from target have moderated significantly,” he noted.
Dr. Asiama highlighted what he described as a “remarkable turnaround” in the country’s external position, which he said offers firmer backing for more flexible monetary policy decisions.
With real interest rates still significantly high and inflation risks easing, the MPC concluded that conditions were favorable for further policy rate cuts to stimulate economic activity.
“Given these considerations, the Committee, by majority decision, voted to reduce the Monetary Policy Rate by 350 basis points to 18.0%,” he announced.
The Governor assured that the MPC will continue to monitor global and domestic developments and adjust policies where necessary to maintain economic momentum.
This latest cut brings the total policy rate reduction in 2025 to 1,000 basis points, cementing one of the most aggressive monetary easing periods in Ghana’s recent economic history. Businesses and households struggling with elevated borrowing costs are expected to benefit as lending rates adjust downward in the medium term.
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