BoG Policy Rate Cut to 25%: Details of the 6-0 Vote Decision by MPC Members
The Monetary Policy Committee (MPC) of the Central Bank of Ghana in its 125th MPC press briefing on July 30, 2025, announced a 300 basis points (3%) cut in the prime rate to 25% down from the previous rate of 28%, marking one of the most significant reductions in recent years.
Announcing the new rate at the 125th MPC press briefing in Accra, Governor of the Central Bank, Dr Johnson Asiama, attributed the rate cut to the continued decline in headline inflation and improvements in the macroeconomic environment.
“Overall, the Committee noted that macroeconomic conditions have significantly improved, inflation expectations are broadly anchored, external buffers have strengthened, and confidence in the economy is returning. The July forecast also shows that headline inflation is expected to decline further in the third quarter of 2025 and trend within the medium-term target of 8±2 percent by the end of 2025, earlier than initial projections. However, there are upside risks to the inflation outlook, which include potential supply chain challenges emanating from the global trade tensions, and upward adjustment in utility tariffs,” he stated.
“This notwithstanding, the impact of these risks on inflation is expected to be offset by appropriately tight monetary policy stance and continued fiscal consolidation. Given these considerations, the Committee, by a majority decision, voted to lower the Monetary Policy Rate by 300 basis points to 25.0 percent. Looking ahead, the Committee will continue to assess incoming data and likely reduce the policy rate further, should the disinflation trend continue,” he added.
Below, however, are the more specific, detailed, and objective reasons given by each member of the Monetary Policy Committee for their respective decision to vote for a cut in the policy rate to 25%.
