Central Bank Cuts 10% off Interest Rate on Own Bills in 12 Days
The Central Bank has, over the past 12 days, reduced interest rates on its Bank of Ghana Bills by some 10%.
The Central Bank, in its recent auction of the Bank of Ghana Bills on July 14, 2025, accepted bids worth GHS 256.9 million at an interest rate of 17.9%, significantly lower than the Bank’s current monetary policy rate of 28%.
In its auction of BoG bills on July 9, 2025, the Central Bank raised approximately GHS 155 million at an interest rate of 23%. Some days prior, on July 7, the BoG secured GHS 825 million with an interest rate of 26.5%.
Just a week earlier, on July 2, the Bank raised GHS 250 million at a higher rate of 27.9%.
The continuous reduction in the interest rates on recent auctions signals the Central Bank’s potential decision to significantly reduce its monetary policy rate in the upcoming 125th Monetary Policy Committee (MPC) meeting scheduled for July 28 to July 30, 2025.
This is due to the fact that, the Bank of Ghana Bills is a reflection of the Central Bank’s monetary policy rate.
Meanwhile, Economist and Professor of Finance at the University of Ghana Business School, Professor Godfred Bokpin, has projected a 3% to 5% cut in the Bank of Ghana’s monetary policy rate.
Explaining his position, Prof Bokpin highlighted the widening gap between the inflation rate, which has declined sharply to 13.7%, and the monetary policy rate, which currently stands at 28%.
