The Bank of Ghana’s Monetary Policy Committee reduced the Monetary Policy Rate by 150 bp to 14.0 % on 18 March 2026, judging that firmly declining inflation, solid economic momentum and elevated real rates create room for further easing even as higher oil prices and heightened Middle East tensions pose upside risks to prices. Having lifted the rate to 28 % in March 2025, the MPC has since delivered successive cuts—most recently moving from 15.50 % in January to the current 14.0 %. No changes were announced to the operating framework. Headline inflation fell sharply to 3.3 % in February from 5.4 % in December, core pressures are muted and the central bank projects inflation to stay within its medium-term target band. Real GDP grew by 6.0 % in 2025, non-oil output by 7.6 %, and the Composite Index of Economic Activity accelerated to 8.4 % y/y in January, while average bank lending rates declined to 19.2 % and the NPL ratio improved to 18.7 %. Externally, a USD 3.7 bn trade surplus in January–February and reserves of USD 14.5 bn (5.8 months of import cover) underpinned cedi stability and a planned reserve-accumulation programme targets 15 months’ cover by 2028. The Committee noted that the Middle East conflict is disrupting supply chains, fuelling oil-price volatility and could tighten global financing conditions. It pledged to monitor these developments closely and stands ready to adjust policy to safeguard price stability.
Bank of Ghana 2026-03-18
Bank of Ghana cuts policy rate by 150 bp to 14.0%
Bank of Ghana’s Monetary Policy Committee cut the policy rate by 150 bp to 14 % on 18 March 2026, extending its easing cycle amid sharply lower February inflation (3.3 %), robust growth and still-elevated real rates. The operating framework was unchanged, with the MPC cautioning that Middle East tensions and volatile oil prices could revive inflation and vowing to respond as needed.