The Bank of Ghana has announced a further reduction in its monetary policy rate, lowering it from 18% to 15.5%.
This means that the cost of borrowing from commercial banks for businesses and households is expected to decrease.
The 2.5 percentage point drop (250 basis points) marks a significant shift in the country’s monetary policy.
The announcement was made by Dr Johnson Asiama, Chair of the Monetary Policy Committee (MPC), during the Committee’s 128th press briefing on Wednesday, January 28, 2026.
Dr Asiama explained that the decision was driven by falling inflation, which is expected to remain low in the near term.
The policy rate influences the interest rates banks charge businesses and households, so a reduction can make loans cheaper and encourage investment.
Cedi falls by 2 pesewas, trading at GH¢10.92 to the dollar.
Dr Asiama also noted that the cedi has remained resilient, strengthening against major currencies, particularly the US dollar.
He added that Ghana’s macroeconomic conditions have improved significantly, giving the Committee confidence in its ability to maintain price stability and keep inflation within the target band.
The latest figures from the Ghana Statistical Service show that Ghana’s inflation rate fell to 5.4% year-on-year in December 2025.
SA/MA
