Ghana’s monetary authorities have delivered yet another bold signal of confidence in the economy’s recovery trajectory, slashing the benchmark policy rate by 350 basis points to 18 per cent, the lowest level in years.
The announcement was made on Wednesday, 26 November 2025, as the Bank of Ghana’s Monetary Policy Committee (MPC) concluded its 127th regular meeting.
Addressing journalists in Accra, MPC Chairman and Governor of the Bank of Ghana, Dr Johnson Asiama, said the decision reflected sustained progress in the fight against inflation, a calmer foreign exchange market, and improving short-term expectations among businesses and consumers.
“Inflation has continued to ease faster than anticipated, supported by a more stable exchange rate and lower underlying pressures. The Committee therefore saw room to provide additional support to the economy while maintaining a prudent stance,” Dr Asiama explained.
The rate cut marks the latest step in a series of interventions aimed at consolidating macroeconomic gains after a period of severe price instability and exchange rate volatility. With headline inflation declining sharply over the past twelve months buoyed by improved food supply conditions, moderating international commodity prices, and stronger monetary discipline. The MPC believes conditions are ripe for easing borrowing costs to stimulate private sector activity.
Analysts say the 18 per cent rate provides a stronger signal to banks to review lending rates downward, potentially unlocking credit for businesses and cushioning households burdened by high repayment costs. Sectors such as manufacturing, agribusiness, and construction may benefit most from the improved financing environment if commercial banks respond swiftly.
Dr Asiama stressed that the Committee’s focus remains on safeguarding hard-won stability, even as it gradually shifts toward supporting growth. “The rate reduction is consistent with our commitment to guide the economy toward a lower and more sustainable interest rate environment, without compromising the hard-won gains in stability,” he said.
Market watchers note that the policy direction aligns with the government’s medium-term recovery strategy, which targets a more predictable investment climate and lower cost of capital to spur economic expansion. The relatively calm foreign exchange market supported by improved inflows, enhanced reserve buffers, and tighter regulation of forex demand has further strengthened confidence in the central bank’s easing cycle.
For many businesses and consumers, the latest policy decision brings cautious optimism. While lending rates remain structurally high, the MPC’s assertive approach signals a shift toward more accommodative monetary conditions that could improve liquidity and business resilience heading into 2026.
Author: Edem Latsu Nukafu
Edem Latsu Nukafu, a passionate communications professional dedicated to public relations, journalism, media strategy, and content development. He holds both a Diploma and Bachelor of Arts Degree in Communication Studies (Public Relations) from the University of Media, Arts and Communication – UniMAC-IJ. A member of Ghana Journalists Association (GJA).
