BoG Maintains High Short-Term Yields, Raises GHS3.13bn in Auction as Investor Demand Stays Firm
The Bank of Ghana (BoG) sold a total of GHS 3.13 billion in its latest short-term securities auction, Tender No. 833, held on October 27, 2025, covering a 56-day maturity period.
According to auction results published by the Central Bank, the discount rate for the 56-day bills ranged between 20.00% and 20.81%, with a weighted average discount rate of 20.78%, equivalent to an interest rate of 21.47% per annum.
Short-Term Yields Hold Steady
The outcome indicates a relatively stable short-term yield environment, reflecting continued investor appetite for high-yield short-term instruments amid expectations of a gradual decline in interest rates ahead of the Bank’s November Monetary Policy Committee (MPC) meeting.
Market analysts note that the sustained demand for short-dated securities signals improved liquidity conditions in the banking sector and investor preference for short-duration instruments as inflation continues to moderate.
Monetary Policy Outlook
The auction was part of the Central Bank’s ongoing liquidity management operations aimed at mopping up excess liquidity from the financial system and anchoring short-term interest rates.
The BoG is expected to maintain a measured approach to yield management as inflation remains within the medium-term target band for the first time since 2021, with analysts projecting a potential policy rate cut of between 250 and 300 basis points in November.
