Ghana’s central bank delivers record rate cut as inflation eases

Ghana’s central bank delivered a sharper-than-expected rate cut on Wednesday, slashing its main policy rate by 350 basis points to 21.5% — the largest reduction on record — as inflation continued to ease and growth prospects strengthened.

The cut exceeded market expectations. A Reuters poll of eight analysts had forecast a 200 basis point reduction to 23%, following a 300 basis point cut at the previous Monetary Policy Committee (MPC) meeting in July.

Governor Johnson Asiama told reporters that Ghana’s macroeconomic outlook had improved over recent months, with the economy showing “strong growth momentum.” GDP expanded by 6.3% year-on-year in the second quarter of 2025, compared with a revised 5.7% in the same period last year, driven by gains in the services sector.

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Headline inflation fell for the eighth consecutive month to 11.5% in August — its lowest since October 2021.

“Given the current state of macroeconomic conditions, the view of the committee was that inflation would continue to ease in the near term,” Asiama said.

He added that headline inflation is projected to fall within the medium-term target band of 8% ±2 percentage points by the end of the fourth quarter.