• Bank of Ghana lowers its policy rate by 150 basis points to 14%, the lowest since July 2021.

• The cut reflects improving macroeconomic conditions and declining inflation, which fell to 3.3% in February 2026.

• Ghana’s economy showed strong momentum, with 6% GDP growth in 2025 and 8.4% economic expansion in January 2026.

The Bank of Ghana (BoG) reduced its key policy rate by 150 basis points to 14%, down from 15.5%, following its 129th monetary policy meeting from March 16–18. The move marks the lowest rate since July 2021, when it stood at 13.5%.

The central bank cited ongoing improvements in macroeconomic conditions during the first two months of 2026. It reported that headline inflation continued to decline, reaching 3.3% in February, down from 5.4% in December 2025, and expects it to remain within the medium-term target range.

BoG warned that risks remain, including rising geopolitical tensions in the Middle East, which could affect global markets. The central bank noted that potential oil price increases and geopolitical escalations could push inflation higher.

Ghana’s economy displayed strong momentum, with real GDP rising 6% in 2025 versus 5.8% in 2024, the fastest growth since 2019. Economic activity expanded 8.4% in January 2026, up from 6% a year earlier, driven by higher private sector lending, industrial production, and household and corporate consumption.

The national currency, the cedi, remained relatively stable, while gross international reserves rose to $14.5 billion by end-February, covering 5.8 months of imports, up from $13.8 billion at end-December 2025.

This article was initially published in French by Lydie Mobio

Adapted in English by Ange J.A de Berry Quenum