Ghana’s central bank on Wednesday slashed its Monetary Policy Rate by 350 basis points to 18 percent, in one of the steepest easing moves in recent years, citing stabilising inflation and improved macroeconomic conditions.
The reduction is expected to lower lending rates over the medium term, offering relief to businesses and households facing high borrowing costs.
Announcing the decision at a press briefing, Governor Dr. Johnson Asiama said the latest assessment by the Monetary Policy Committee (MPC) shows the economy has entered a period of broadly improved stability, supported by a strong rebound 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. This is against the backdrop that current risks in the outlook to shift the path of inflation away from target have moderated significantly,” he said.
Dr. Asiama noted that the country’s external position has seen a remarkable turnaround, providing firmer backing for policy flexibility.
“Given these considerations, the committee, by majority decision, voted to lower the monetary policy rate further by 350 basis points to 18.0%,” he added.
The governor also assured that the MPC will continue to closely monitor domestic and external developments and take necessary policy actions to sustain the current economic momentum.
