The Bank of Ghana has cut its benchmark interest rate by 250 basis points to 15.5 per cent, deepening its monetary easing cycle as inflation continues to slow and macroeconomic conditions improve.
The decision was taken by a majority of members of the Monetary Policy Committee (MPC) at its 128th meeting, Governor Dr Johnson Pandit Asiama announced at a press briefing in Accra.
The central bank said the move reflects a sharp disinflation trend, a stronger cedi and improving fiscal and external sector balances, which together have created room for further policy easing.
“Based on the foregoing considerations, the committee, the MPC, by majority decision, voted to lower the monetary policy rate by 250 basis points to 15.5 percent,” Dr Asiama said.
He noted that inflation had declined faster than earlier projected, supported by tighter fiscal discipline, improved foreign exchange inflows and relative stability in the cedi, easing cost pressures across the economy.
The governor added that economic activity had strengthened, with indicators pointing to a gradual recovery in output and confidence, even as global financial conditions remain uncertain.
“The committee will continue to monitor developments closely and take appropriate policy actions to ensure that the gains from macroeconomic stability are translated into sustainable growth,” he said.
The latest cut follows a period of aggressive tightening aimed at curbing inflation, which surged in previous years amid currency depreciation, supply shocks and fiscal stress. With price pressures now easing, the central bank appears increasingly focused on supporting growth while safeguarding recent stability gains.
Analysts say the reduction in the policy rate could ease borrowing costs and support private sector activity, though they caution that the central bank is likely to remain data-dependent as it balances growth objectives against lingering risks from global markets and domestic fiscal pressures.
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