The Monetary Policy Committee of the Bank of Ghana (BoG) has reduced the policy rate by 350 basis points to 21.5% from 25%.
The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama made the announcement after the 126th meeting of the committee, on September 17, 2025.
He explained that the decision to cut the rate was supported by a majority of committee members.
He noted that the committee projected inflation to decline by the end of the fourth quarter.
"The view of the committee was that inflation will continue to ease in the near term. In the outlook, headline inflation is expected to drop within the medium of 8 plus or minus 2% by the end of the fourth quarter", Dr. Asiama said.
"Given these considerations, the Committee, by a majority decision, voted to lower the Monetary Policy Rate by 350 basis points to 21.5%. The Committee will continue to monitor macroeconomic developments and take the appropriate policy decision as and when necessary to reinforce the disinflation process", he added.
The Governor, however, cautioned that any upward adjustment in utility tariffs could create price pressures in the medium term, potentially affecting the inflation outlook.