Bank of Ghana lowers policy rate from 25 to 21.5%
The Bank of Ghana’s (BoG) Monetary Policy Committee has lowered its benchmark policy rate by 350 basis points to 21.5%; citing a steady decline in inflationary pressures.
It was a majority decision by the MPC members.
The reduction is the second major cut this year as the central bank seeks to stimulate credit growth and support economic recovery albeit threats to currency stability and elevated risks of the proposed upward utility tariff adjustments.
In July 2025, the rate was reduced by 300 basis points from 28% to 25%. This was after a marginal hike in March 2025 from 27% to 28% – a rate which was held steady during the May 2025 meeting.
Governor of the Bank, Dr. Johnson Asiama announced the new policy stance while addressing the press at the end of the 126th MPC meeting on Wednesday, September 17, 2025.
“Given the current state of macroeconomic conditions, 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 to within the medium-term target of 8 ± 2 percent by the end of the fourth quarter. However, the possible upward review of utility tariffs could exert some price pressures in the medium term. Notwithstanding this, maintenance of an appropriate monetary policy stance, strong sterilisation efforts, ongoing fiscal consolidation, and adequate reserve buffers should sustain the disinflation process.”
He attributed the rate cut to anticipated sound monetary policy reforms and ongoing fiscal consolidation efforts despite the underlying risks.
“Given these considerations, the Committee, by a majority decision, voted to lower the Monetary Policy Rate by 350 basis points to 21.5 percent. The Committee will continue to monitor macroeconomic developments and take the appropriate policy decision as and when necessary to reinforce the disinflation process”, the Governor added.
