The Bank of Ghana has reduced its Monetary Policy Rate by 350 basis points to 18 percent. This marks one of the steepest policy easing decisions in recent years.
The Central Bank lowered the rate in response to consistent improvements in controlling inflation, a stabilizing currency, and better macroeconomic circumstances that provide space for expansion.
In the medium run, the reduction is anticipated to result in lower lending rates, providing relief to people and businesses who have been burdened by excessive borrowing costs.
Governor Dr. Johnson Asiama announced the decision at a press conference on Wednesday, November 26, 2025, stating that the Monetary Policy Committee’s (MPC) most recent assessment indicates that the economy has entered a period of generally improved stability, supported by a robust 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. 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.
For him, the country’s external position has seen a remarkable turnaround which provides firmer backing for policy flexibility.
Dr. Asiama explained that with risks to the inflation outlook receding and real interest rates remaining significantly high, the Committee judged that conditions were right to reduce the policy rate to stimulate economic activity.
“Given these considerations, the committee, by majority decision, voted to lower the monetary policy rate further by 350 basis points to 18.0%”, the Governor added.
The Monetary Policy Committee (MPC) will continue to keep a close eye on both internal and foreign developments and take the appropriate policy measures to maintain the current economic momentum, according to Governor Dr. Johnson Asiama.
This is one of the more aggressive easing cycles in recent memory, as the Central Bank has now cut the policy rate by a total of 1,000 basis points in 2025 alone.