The Bank of Ghana has cut its Monetary Policy Rate (MPR) by 350 basis points to 18 percent, one of its steepest easing measures in recent years.
According to the Central Bank, the decision reflects sustained progress in driving down inflation, a more stable cedi, and improved macroeconomic conditions that have created space to support economic activity.
The latest reduction is expected to trigger a gradual drop in lending rates across commercial banks in the coming months.
This is anticipated to provide relief to businesses and households that have endured elevated borrowing costs over the past year.
Announcing the decision at a press briefing on Wednesday, November 26, 2025, 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, anchored 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.
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.