MPC Keeps to Policy Rate Cut Path as Benchmark Interest Rate Falls to 15.5%
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has reduced the monetary policy rate by 250 basis points to 15.5 per cent, maintaining its easing stance amid continued moderation in inflationary pressures.
The latest adjustment brings the benchmark interest rate down from 18 per cent, reflecting growing confidence in the disinflation process and improving macroeconomic conditions.
Announcing the decision, Governor of the Bank of Ghana, Dr Johnson Asiama, said the Committee’s action was underpinned by the sustained decline in headline inflation and expectations that price pressures will continue to ease in the near term.
According to data from the Ghana Statistical Service (GSS), headline inflation declined to 5.4 per cent at the end of December 2025, falling well below the Bank of Ghana’s medium-term inflation target band of 8 per cent, plus or minus 2 percentage points.
Dr Asiama noted that the current inflation trajectory provides sufficient policy space to support economic activity, while remaining consistent with the Bank’s price stability mandate.
The reduction in the policy rate is expected to transmit to market interest rates, leading to lower borrowing costs for businesses and households. This, in turn, is anticipated to ease financing conditions, stimulate private sector activity, and support overall economic growth.
The MPC reiterated that it will continue to closely monitor domestic and external developments and take appropriate policy actions to safeguard macroeconomic stability.
