The Bank of Ghana has further eased monetary policy, cutting the Monetary Policy Rate (MPR) by 250 basis points to 15.5% from 18%, citing improved macroeconomic conditions and sustained growth momentum.
The move follows the Bank’s earlier aggressive easing in late 2025, when the Monetary Policy Committee (MPC) reduced the policy rate by 350 basis points amid declining inflation and improving real sector activity.
Announcing the decision after the MPC meeting, Governor Dr Johnson Asiama said the committee was encouraged by the continued moderation in inflationary pressures and the resilience of economic growth.
Inflation, which has remained within the Bank’s target band, is expected to stay stable into 2026, supported by tighter fiscal discipline, improved supply conditions and moderated risks in the inflation outlook.
According to the Governor, the current policy stance reflects the Bank’s confidence that price stability can be maintained even as monetary conditions are eased further to support private sector activity.
“The MPC, by majority decision, voted to lower the monetary policy rate by 250 basis points to 15.5%. The committee will continue to monitor developments closely and take appropriate policy actions to ensure that the gains from macroeconomic stability are translated into sustainable growth,” he said.
Dr Asiama noted that real interest rates remain elevated, creating room for a gradual recalibration of policy without undermining macroeconomic stability.
The policy rate reduction is also expected to improve credit conditions and support investment, particularly in productive sectors of the economy, as GDP growth is projected to remain strong in 2026.
He assured that the Bank will continue to monitor domestic and external developments closely and stand ready to adjust policy as needed to safeguard stability.
Dr Asiama reiterated the Bank’s commitment to deploying a full range of monetary policy tools to manage liquidity and anchor inflation expectations, including the continued use of open market operations to reinforce the policy stance.
The latest rate cut signals the central bank’s intent to balance price stability with growth support as the economy consolidates its recovery.
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Source: www.myjoyonline.com
