Governor of the Bank of Ghana, Dr. Johnson Asiama, has dismissed concerns that the central bank’s decision to cut the policy rate by 150 basis points could pose risks to the economy.
Addressing the media after the announcement, Dr. Asiama explained that the decision was based on a thorough assessment of economic conditions, aimed at supporting growth while keeping inflation under control.
“This cut isn’t problematic? Not at all. Remember, these have been three days of going through a lot of materials, looking at the outlook, and evaluating the issues. We look at the banking sector, it is now solvent, it is liquid, it’s growing by way of assets,” he said.
His comments come at a time of growing global concern that the ongoing conflict in the Middle East is driving up crude oil prices and injecting fresh uncertainty into the global inflation outlook, developments that have complicated the central bank’s decision-making worldwide.
Dr. Asiama acknowledged that external geopolitical shocks could affect trade and financial conditions but emphasized Ghana’s resilience.
“While we remain mindful of external risks, including those from distant conflict zones, the recent policy decision reflects a careful balance, one that safeguards domestic stability while supporting economic activity,” he said.
He further reiterated that the Bank of Ghana will continue to closely monitor global developments and adjust its policy stance as needed to maintain stability.
“Our focus is to ensure the economy remains on a stable path. This requires vigilance in the face of global uncertainties, as well as confidence in the progress made so far,” the Governor added.
The reduction of the policy rate to 14 percent on Wednesday, 18th March, 2026, marks the second consecutive cut in 2026.
