By: Franklin ASARE-DONKOH
Ghana’s central bank, the Bank of Ghana’s (BoG) Monetary Policy Committee (MPC), has cut its benchmark policy rate by 350 basis points to 21.5%, citing a steady decline in inflationary pressures.
Data from the BoG shows that in July 2025, the central bank reduced its rate by 300 basis points from 28% to 25%, following a marginal hike in March from 27% to 28%. The rate was held steady at the May meeting.
Addressing the press after the 126th MPC meeting on Wednesday, September 17, 2025, Governor of BoG, Dr. Johnson Asiama, said the cut reflected confidence in ongoing fiscal consolidation and anticipated reforms to strengthen monetary policy.
The 350 basis points cut marks the second major reduction this year, as the central bank moves to stimulate credit growth and support economic recovery, despite concerns over currency stability and the potential impact of proposed utility tariff increases.
