The Bank of Ghana’s Monetary Policy Committee (MPC) has decided by majority vote to reduce the policy rate by 350 basis points, lowering it from 21.5% to 18%. This announcement was made by Governor Dr. Johnson Asiama, Chair of the MPC, at the 127th MPC press conference held in Accra on Wednesday, November 26.
Dr. Asiama highlighted that inflation has steadily declined this year and remains on target. He emphasized that overall macroeconomic conditions in Ghana have broadly improved, which underpinned the committee’s decision.
The governor explained that the 18% rate reflects positive trends, including a significant expected drop in inflation by year-end, tighter fiscal and monetary policies, and a robust buildup of foreign reserves that supports exchange rate stability.
The bank anticipates inflation will stay stable near its target into the first half of 2026. Given the current high real interest rates, there is room to ease monetary policy to help accelerate economic growth recovery.
Dr. Asiama said, “Considering these developments, the committee voted to cut the policy rate to 18% and will continue monitoring economic conditions to take appropriate policy actions to maintain macroeconomic stability.”
Additionally, the bank will revert to using the 14-day Treasury bill as its primary tool for open market operations. The next MPC meeting is scheduled for January 26–28, 2026, with the policy decision set to be announced on January 28.
Story by: Mercy Addai Turkson #ahotoronline.com