- Decision
- Lower
- Rate change
- 350 bps
- monetary policy rate
- 18%
The Monetary Policy Committee of the Bank of Ghana cut the Monetary Policy Rate by 350 bp to 18.0 % at its 26 November 2025 meeting, judging that a faster-than-expected fall in headline inflation to the 8 % central target in October, firmer reserves and a stronger cedi allow some easing to support a solid growth rebound. After lifting the rate to 28 % in March, the MPC has since delivered three successive cuts totalling 1,000 bp. The Bank will also make the 14-day bill its primary open-market instrument. Domestically, annual GDP growth was 6.3 % in H1 and August’s high-frequency indicator showed 5.1 % growth, while the CIEA expanded 9.6 % y/y in September and real private-sector credit turned positive at 5.4 % in October. Inflation is projected to stay within 6–8 % through end-2025, helped by tight policy, fiscal consolidation and improved food supply. Externally, a US$3.8 bn current-account surplus, a US$7.5 bn trade surplus and rising private transfers lifted reserves to US$11.4 bn (4.8 months of imports) and underpinned a 32.2 % YTD appreciation of the cedi against the USD. The Committee noted easing global inflation and financing conditions amid persistent trade and geopolitical uncertainties and said it will keep monitoring risks and adjust policy as needed to preserve macroeconomic stability.
Rate evolution
From July 2025 to March 2026, the Bank of Ghana cut the Monetary Policy Rate by 1,100 basis points from 25.0 percent to 14.0 percent, delivering a rapid easing cycle before pausing in May 2026 and maintaining that stance in July and September 2026. The cuts were initially driven by a sharp and broad-based disinflation, declining core inflation, anchored inflation expectations, cedi appreciation, strong fiscal consolidation and a marked strengthening in external buffers, while firming economic activity and high real interest rates gave the Committee scope to support recovery. As the cycle progressed, the Committee increasingly framed policy as shifting from restoring stability to consolidating macroeconomic gains, supporting real sector recovery, job creation and financial intermediation, even as it continued to flag risks from utility tariff adjustments, commodity-market volatility and global uncertainty.
After the final cut in March 2026, the Committee held at 14.0 percent in May and again in July, first judging risks to inflation and growth as broadly balanced because headline inflation remained below target, core pressures were still easing and domestic spillovers were muted, and later concluding that the current stance remained appropriate to guide inflation into the medium-term target band while allowing time to assess evolving geopolitical developments and their potential impact on the domestic economy. In July, it noted that headline inflation had risen to 5.3 percent in June from 3.7 percent in May, largely on base effects and a temporary increase in transport fares following higher crude oil prices, while core inflation and inflation expectations also increased but remained broadly within the target band, against a backdrop of stronger domestic growth, higher private sector credit growth, continued fiscal consolidation and adequate reserve buffers. In September, it unanimously maintained the rate at 14.0 percent and again judged risks to inflation and growth as broadly balanced, noting that headline inflation rose to 5.0 percent in August from 4.6 percent in July on utility tariff pass-through and high crude oil prices but remained below the lower bound of the medium-term target band, while core inflation and inflation expectations eased, growth remained resilient, and fiscal consolidation, improved food supply and exchange-rate stability presented offsetting downside risks.