BoG cuts policy rate sharply to 18%

The Bank of Ghana has cut its Monetary Policy Rate (MPR) by 350 basis points to 18%, marking one of the steepest rate reductions in recent years.

The Central Bank said the move reflects sustained progress in controlling inflation, a stabilising currency, and improved macroeconomic conditions, creating space to support economic growth.

The reduction is expected to gradually lower lending rates, providing relief to businesses and households burdened by high borrowing costs.

Announcing the decision on Wednesday, November 26, 2025, Governor Dr. Johnson Asiama said the Monetary Policy Committee (MPC) assessment shows the economy has entered a period of broad stability, supported by a strong rebound in the external sector.

“The Bank projects inflation to remain around target well into the first half of 2026. Risks that could push inflation off track have moderated significantly,” he said.

Dr. Asiama highlighted that Ghana’s external position has improved remarkably, giving the Bank greater flexibility in policy decisions.

With inflation risks receding and real interest rates still high, the MPC judged it was the right time to ease monetary policy to stimulate economic activity.

“Based on these considerations, the Committee, by majority vote, decided to lower the monetary policy rate by 350 basis points to 18%,” he added.

He assured that the MPC will continue monitoring domestic and global developments closely and take necessary actions to sustain economic momentum.

With this latest reduction, the Bank of Ghana has cut the MPR by a total of 1,000 basis points in 2025, making it one of the most aggressive monetary easing cycles in recent years.