By Ashiadey Dotse
The Bank of Ghana has reduced its policy rate to 14 percent to help control inflation while supporting economic growth.
The Monetary Policy Committee (MPC) of the central bank cut the rate by 150 basis points, marking the second reduction in 2026. In January, the rate was lowered from 18 percent to 15.5 percent.
Speaking at a press conference in Accra on March 18, 2026, Governor Johnson Asiama said the decision was taken after assessing both local and global economic conditions.
He explained that rising tensions in the Middle East are creating uncertainty in the global economy, which could affect Ghana through higher crude oil prices and inflation risks.
Despite these concerns, the central bank expects inflation to remain within its medium-term target. However, external risks such as rising oil prices and geopolitical tensions could still affect the outlook.
Dr. Asiama noted that the committee also considered domestic factors, including slow credit growth and improving loan performance in banks.
“The Monetary Policy Committee has considered the current economic conditions and decided that a reduction in the policy rate is appropriate to stimulate lending and investment,” he said.
He added that the move is expected to reduce borrowing costs for businesses and households, making it easier to access credit and boost economic activity.
The Governor also assured that Ghana’s banking sector remains strong and stable. According to him, total assets in the sector have increased, while non-performing loans have declined, showing resilience in the financial system.
The policy rate is a key tool used by the central bank to control inflation and guide interest rates in the economy.
