Ghana’s central bank cut its benchmark interest rate by 150 basis points to 14% on Wednesday, citing a prolonged period of declining inflation and favorable domestic macroeconomic conditions.
The decision, announced by Bank of Ghana Governor Dr. Johnson Asiama following a Monetary Policy Committee (MPC) meeting, brings the policy rate to its lowest level since early 2022. The move follows a cumulative 12.5 percentage point reduction in borrowing costs since July 2025 as the regulator shifts its focus toward supporting private sector credit and economic growth.
“The favorable domestic macroeconomic conditions and the high prevailing real interest rates provide scope to ease the policy rate further,” Governor Asiama told a press briefing in Accra. He noted that inflation expectations remain well-anchored within the bank’s medium-term target band of 6% to 10%.
The aggressive easing is underpinned by a sharp deceleration in consumer prices. Data from the Ghana Statistical Service shows headline inflation fell to 3.3% in February 2026, marking the 14th consecutive monthly decline. This represents a significant plunge from the 23.1% recorded in February 2025, driven largely by a stable exchange rate and lower food price pressures.
Despite the domestic optimism, the MPC flagged emerging external risks. Specifically, the committee noted that escalating geopolitical tensions in the Middle East have “deepened uncertainty” in the external sector, which could potentially trigger a spike in global crude oil prices and impact the domestic inflation trajectory.
Ghana’s economy grew by an average of 6.1% through the first three quarters of 2025. With the latest rate cut, the central bank aims to sustain this recovery momentum as the country nears the completion of its current IMF-supported program later this year.
