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The Monetary Policy Committee (MPC) of the Bank of Ghana has voted by majority to reduce the policy rate by 350 basis points—from 21.5% to 18%. The announcement was made by MPC Chair and Governor of the Bank, Dr Johnson Asiama, during the 127th MPC press briefing in Accra on Wednesday, November 26.
Dr Asiama noted that inflation has steadily declined throughout the year and is now moving in line with the Bank’s target. He explained that the policy rate cut reflects broad improvements in Ghana’s macroeconomic environment, including expectations of a significant drop in inflation by year-end, stricter fiscal and monetary discipline, and a strong accumulation of foreign reserves supporting exchange rate stability.
He explained that the Bank anticipates inflation to remain close to target through the first half of 2026. Current high real interest rates, he added, give room to ease monetary policy to support the ongoing economic recovery.
Dr Asiama stated that the committee’s assessment shows macroeconomic conditions have “broadly improved,” supported by the tightening stance of monetary policy, better reserve levels, and reduced risks that could push inflation off its projected path.
Alongside the policy rate cut, the Bank of Ghana will revert to the 14-day bill as its primary tool for open market operations.
The next MPC meeting is scheduled for January 26–28, 2026, with the policy announcement set for January 28.
Source: 3news
