Ghana’s central bank on Wednesday cut its benchmark policy rate by 250 basis points to 15.5 percent, its lowest level since February 2022 and below most economists’ expectations, as easing inflation and stronger external reserves improve macroeconomic conditions.
The decision marks the latest step in the Bank of Ghana’s easing cycle, with cumulative cuts now totaling 12.5 percentage points since July last year.
Governor Johnson Asiama said the Monetary Policy Committee’s first meeting of 2026 concluded that underlying conditions had strengthened sufficiently to justify further easing. He cited the impact of tight monetary policy, fiscal consolidation, and a significant build-up in foreign reserves.
“This was supported by the tight monetary policy stance, fiscal consolidation, and significant build-up of reserves,” Asiama said at a news conference. He added that consumer inflation in the first half of the year is expected to remain broadly within the bank’s medium-term target band, while economic growth should stay firm through 2026.
Headline inflation is projected to move closer to the central bank’s medium-term target of eight percent. Annual inflation slowed to 5.4 percent in December — the lowest level since July 2022 — marking the 12th consecutive month of disinflation in Africa’s largest gold-producing economy.
The central bank said it would continue to monitor price and financial conditions and take further action if needed to preserve macroeconomic stability and support sustainable growth.
Ghana is emerging from its most severe economic crisis in decades and is expected to complete its three-year International Monetary Fund support programme in August.
Prior to the latest move, the country ranked among the most aggressive rate cutters last year. The policy rate was reduced by 1,000 basis points from 27 percent to 18 percent between January and November.
Analysts described the latest cut as measured rather than expansionary.
“After an extended period of tight monetary conditions, the easing reflects growing confidence that inflation has not only declined but is becoming better anchored,” said Ebenezer Ndoor, a Ghana-based economic policy analyst. He noted that real interest rates remain positive even after the cut, suggesting policy is still restrictive enough to support price stability and avoid reversing recent gains.
Capital Economics economist David Omojomolo told Reuters that the central bank retains a dovish bias as it seeks to support growth alongside low inflation, adding that further rate reductions are likely this year.
Overall, analysts say the move signals growing confidence in macroeconomic stabilisation, with the key challenge now being to sustain discipline while translating stability into real-sector recovery.
