The Bank of Ghana's Monetary Policy Committee has reduced the policy rate by 100 basis points to 27%, citing a sustained decline in inflation and improving macroeconomic fundamentals. Inflation fell to 14.5% in October 2025, down from a peak of 54% in December 2022.
Governor Dr. Ernest Addison said the rate cut was intended to support credit growth and economic activity while maintaining price stability. "The disinflation trend is firmly entrenched, and we are confident that inflation will continue its downward trajectory toward our medium-term target of 8%," he said.
Commercial banks are expected to reduce lending rates gradually, though analysts cautioned that high non-performing loan ratios — still above 20% — could limit the pass-through to borrowers. The Ghana Association of Bankers said members would review their base rates within 30 days.
The cedi has strengthened against the dollar by 12% since the beginning of 2025, providing additional comfort to the MPC in making the rate decision.
