The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has announced a sharp cut in the policy rate, lowering it by 350 basis points to 18 percent from the previous 21.5 percent.
The decision followed the conclusion of the committee’s 127th meeting held on November 25, 2025.
At a press briefing at the central bank’s headquarters in Accra, Governor Dr. Johnson Asiama revealed that the majority of MPC members voted in favor of the significant reduction.
He noted that the committee remains confident about sustaining price stability in the economy and keeping inflation within the target range. Current inflation stands at 8.0 percent.
“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.
Dr. Asiama further explained that the relatively high real interest rate provides room for easing monetary policy to support ongoing growth recovery efforts.
“Given these considerations, the committee, by majority decision, voted to lower the monetary policy rate further by 350 basis points to 18.0%,” he announced.
He assured that the MPC will continue to closely monitor economic developments and adopt appropriate measures to safeguard macroeconomic stability.
The Governor emphasized that the Bank of Ghana will deploy its full range of monetary policy tools to manage inflation and ensure price stability.
“We have one additional measure. In addition to the policy rate reduction, the bank will now return to the use of the 14-day bill as its main instrument for conducting open market operations,” he added.
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