By Benjamin Nii Nai Anyetei
Ghana continues to maintain the third-highest monetary policy rate in Sub-Saharan Africa, despite cumulative rate cuts of 7.5 percentage points since the start of 2025.
According to the World Bank’s October 2025 Africa’s Pulse Report, Ghana’s benchmark rate stands at 21.5%, ranking behind Nigeria (27%) and Malawi (26%).
The report noted that despite multiple rate reductions, the Bank of Ghana (BoG) has remained cautious, focusing on consolidating disinflation gains and preserving macroeconomic stability.
In its most recent Monetary Policy Committee (MPC) decision, the BoG announced a 350-basis-point cut in September, marking Ghana’s lowest policy rate since October 2022.
The central bank said the move reflected growing confidence in the country’s economic outlook, supported by declining inflation, stronger external reserves, and steady growth across key sectors.
However, the World Bank observed that Ghana’s monetary conditions remain relatively tight compared to regional peers. Countries such as Kenya, Mozambique, Lesotho, and South Africa have moved deeper into their easing cycles, while Rwanda and Uganda have maintained stable rates for months.
While the BoG’s measured approach helps anchor inflation expectations and sustain long-term stability, the World Bank said gradual easing could further reduce lending costs, spur private sector investment, and enhance Ghana’s trade competitiveness.
The report also warned that global headwinds such as commodity price volatility and economic uncertainty in advanced markets could slow the pace of monetary normalisation across Africa.
Nonetheless, it noted that countries like Ghana, with improving inflation dynamics and credible policy frameworks, now have the flexibility to ease monetary conditions without undermining macroeconomic stability.
As Ghana continues to balance caution with growth, analysts expect the BoG to maintain a gradual approach, guided by both domestic indicators and global economic trends before making further policy adjustments.
