The Bank of Ghana has decreased its Monetary Policy Rate by 350 basis points to 18 percent. This decision represents one of the most significant policy easing actions in recent years.
The Central Bank made this reduction due to sustained progress in controlling inflation, a stabilizing currency, and improved macroeconomic conditions that allow for support of growth.
This decrease is anticipated to result in lower lending rates in the medium term, providing relief to businesses and households that have faced high borrowing costs.
During a press briefing on Wednesday, November 26, 2025, Governor Dr. Johnson Asiama announced that the latest evaluation by the Monetary Policy Committee (MPC) indicates that the economy has entered a phase of generally improved stability, supported by a strong recovery in the external sector.
“The bank forecasts a continued stable inflation profile around the target and well into the first half of next year, 2026. This is in light of the fact that current risks in the outlook that could alter the path of inflation away from the target have significantly diminished,” he stated.
According to him, the country’s external position has experienced a remarkable turnaround, which provides stronger support for policy flexibility.
Dr. Asiama elaborated that with the risks to the inflation outlook diminishing and real interest rates remaining considerably high, the Committee determined that the conditions were appropriate to lower the policy rate to stimulate economic activity.
“Considering these factors, the committee, by majority decision, voted to further reduce the monetary policy rate by 350 basis points to 18.0%,” the Governor added.
Governor Dr. Johnson Asiama has assured that the Monetary Policy Committee (MPC) will continue to closely observe domestic and external developments and take the necessary policy actions to maintain the current economic momentum.
With this latest reduction, the Central Bank has now decreased the policy rate by a total of 1,000 basis points in 2025 alone, making it one of the most aggressive easing cycles in recent history.
