Ghana’s central bank has once again surprised markets with a bold monetary policy move, delivering a larger-than-expected rate cut aimed at stimulating economic growth. On September 17, 2025, the Bank of Ghana reduced its benchmark policy rate by 350 basis points, bringing it down from 25% to 21.5%. This follows a previous 300-point cut in July, signaling a clear shift toward aggressive easing as the country seeks to revive credit activity and support its post-pandemic recovery. The decision reflects growing confidence in Ghana’s macroeconomic stability and a belief that inflationary pressures are sufficiently contained to allow for looser monetary conditions.
Governor Dr. Johnson Asiama cited a sustained decline in inflation, which now stands at 11.5% year-on-year, as a key factor behind the rate cut. He emphasized that the central bank expects inflation to fall within its target band of 6–10% by the end of the year, supported by fiscal consolidation and improving supply chain dynamics. Despite lingering challenges such as currency depreciation and pressure on foreign reserves, the bank’s outlook remains optimistic. The rate cut is intended to lower borrowing costs, encourage private sector investment, and boost consumer spending, all critical components of Ghana’s broader economic strategy.
The move has drawn mixed reactions from analysts and investors. While some applaud the central bank’s proactive stance in supporting growth, others caution that the pace of easing may be too rapid given external vulnerabilities. Ghana’s economy, like many in the region, remains exposed to global shocks, including commodity price fluctuations and tightening financial conditions in advanced economies. Nevertheless, the Bank of Ghana appears committed to balancing growth and stability, using its policy tools to navigate a complex and evolving economic landscape.
This latest rate cut underscores the central bank’s willingness to act decisively in pursuit of its dual mandate: maintaining price stability while fostering economic development. As Ghana continues to implement structural reforms and attract foreign investment, the effectiveness of its monetary policy will be closely watched. The coming months will reveal whether this aggressive easing cycle delivers the intended boost to credit markets and whether inflation remains on a downward trajectory. For now, the Bank of Ghana has made its position clear, it is ready to support the economy with bold action and a forward-looking approach.