MPC Unanimously Maintains 28% Benchmark Interest Rate
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG), has maintained its monetary policy rate at 28%.
This is the first time the MPC led by Governor Dr Johnson Asiama, would be maintaining the policy rate at 28%.
The maintenance of the benchmark interest rate follows a prior 100 basis points (1%) increment in the policy rate in March 2025.
The maintenance of the prime rate according to the MPC, is to further anchor inflationary expectations on the back of the steady decline in the country’s headline inflation which now stands at 21.2% at end-April 2025.
Announcing the policy rate decision by the MPC at the 124th MPC press briefing on Friday, May 23, 2025, Governor Dr Asiama quipped the Committee observes that the current level of inflation remains high relative to the medium-term target and will therefore require maintaining the tight monetary policy stance to reinforce the disinflation process.
“Under the circumstances, the Committee, by a unanimous decision, maintained the policy rate at 28%,” he stated.
Speaking further, the Governor noted that, on additional policy measures taken by the Committee, the Committee decided to amend the current Cash Reserve Ratio of banks.
“The CRR or the Dynamic Cash Reserve Ratio for all banks will now be maintained in their respective currencies. This means that foreign currency reserves for foreign currency deposits and in the same way, domestic currency reserves for domestic currency deposits. This policy measure will become effective on June 5, 2025,” he added.
Given the maintenance of the policy rate, interest rates on loans to the private sector are expected to remain the same with no additional increment in the costs of production by businesses in the country.
