The Bank of Ghana has further relaxed its monetary policy, reducing the Monetary Policy Rate (MPR) by 250 basis points from 18 per cent to 15.5 per cent, citing stronger macroeconomic conditions and sustained economic growth.
The latest cut follows an earlier round of aggressive easing in late 2025, when the Monetary Policy Committee (MPC) lowered the policy rate by 350 basis points as inflation declined and activity in the real sector improved.
Announcing the decision after the MPC meeting, Governor Dr Johnson Asiama said the committee was encouraged by the continued slowdown in inflation and the economy’s ability to maintain steady growth.
He noted that inflation has remained within the Bank’s target range and is expected to stay stable into 2026.
This outlook is supported by improved fiscal discipline, better supply conditions, and reduced inflationary risks.
According to the Governor, the current policy stance reflects the Bank’s confidence that price stability can be preserved, even as monetary conditions are eased further to stimulate private sector activity and support economic expansion.
“The MPC, by majority decision, voted to lower the monetary policy rate by 250 basis points to 15.5%. 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.
Dr Asiama noted that real interest rates remain elevated, creating room for a gradual recalibration of policy without undermining macroeconomic stability.
The policy rate reduction is also expected to improve credit conditions and support investment, particularly in productive sectors of the economy, as GDP growth is projected to remain strong in 2026.
He assured that the Bank will continue to monitor domestic and external developments closely and stand ready to adjust policy as needed to safeguard stability.
Dr Asiama reiterated the Bank’s commitment to deploying a full range of monetary policy tools to manage liquidity and anchor inflation expectations, including the continued use of open market operations to reinforce the policy stance.
The latest rate cut signals the central bank’s intent to balance price stability with growth support as the economy consolidates its recovery.