The Bank of Ghana has reduced its Monetary Policy Rate by 350 basis points to 18 percent. This marks one of the steepest policy easing decisions in recent years.
The Central Bank cut the rate over sustained progress in taming inflation, a stabilising currency and improved macroeconomic conditions that create room to support growth.
The reduction is expected to translate into lower lending rates in the medium term, offering relief to businesses and households that have struggled with high borrowing costs.
Announcing the decision at a press briefing on Wednesday, November 26, 2025, Governor Dr. Johnson Asiama said the latest assessment by the Monetary Policy Committee (MPC) shows the economy has entered a period of broadly improved stability, anchored by a strong rebound in the external sector.
“The bank projects a continued stable inflation profile around the target and well into the first half of next year, 2026. This is against the backdrop that current risks in the outlook to shift the path of inflation away from target have moderated significantly”, he said.
For him, the country’s external position has seen a remarkable turnaround which provides firmer backing for policy flexibility.
Dr. Asiama explained that with risks to the inflation outlook receding and real interest rates remaining significantly high, the Committee judged that conditions were right to reduce the policy rate to stimulate economic activity.
“Given these considerations, the committee, by majority decision, voted to lower the monetary policy rate further 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 monitor domestic and external developments and take the necessary policy actions to sustain the current economic momentum.
With this latest reduction, the Central bank has now lowered the policy rate by a cumulative 1,000 basis points in 2025 alone, making it one of the most aggressive easing cycles in recent years.
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