BoG Set for Deeper Monetary Easing Amid Single-Digit Inflation, Says Fitch Solutions
Fitch Solutions is projecting a more aggressive monetary policy easing cycle by the Bank of Ghana (BoG) as inflation continues its rapid descent into single digits. In its November 2025 Sub-Saharan Africa Update, the UK-based research firm said it expects the policy rate to reach 14% by end-2026, driven by improved macroeconomic stability and easing price pressures.
According to Fitch Solutions, the sharp drop in inflation has created room for further cuts, a move it believes will stimulate private sector credit expansion and strengthen domestic demand.
“With inflation in single digits, we expect the BoG to keep cutting aggressively through the coming months, further boosting private credit, corporate capex, and domestic demand,” the report stated.
The Central Bank has already embarked on one of the most rapid easing cycles globally, lowering its benchmark policy rate by a cumulative 1,000 basis points since the beginning of 2025. At its November 2025 Monetary Policy Committee (MPC) meeting, the BoG cut an additional 350 basis points, bringing the policy rate down to 18.00%.
In its policy statement, the MPC attributed the decision to broad improvements in macroeconomic conditions and a sustained fall in inflation levels.
“The view of the Committee was that overall macroeconomic conditions have broadly improved,” the BoG noted, adding that strong reserve accumulation and exchange rate stability are anchoring a favourable inflation outlook.
It further indicated that risks capable of diverting inflation from the projected path have “moderated significantly”, reinforcing confidence in a stable inflation profile well into the first half of 2026.
Fitch Solutions expects these conditions to support more decisive monetary policy easing, potentially unlocking stronger lending activity and enhancing growth momentum across the economy.
