• BoG cuts its benchmark rate to 18% from 21.5%, citing disinflation and better macro conditions.

• Inflation drops from 23.5% in January 2025 to 8% in October 2025, returning to target.

• Cedi appreciates 32.2% against the dollar as reserves rise to $11.4 billion.

The Bank of Ghana (BoG) cut its benchmark interest rate by 350 basis points to 18% from 21.5%. The Monetary Policy Committee (MPC) announced the decision in a statement released on Wednesday, 26 November 2025.

The committee said improved macroeconomic conditions and a sharp decline in inflation created room for policy easing. It added that headline inflation dropped from 23.5% in January to 8% in October 2025, bringing it back to the central bank’s target band.

The Bank of Ghana’s monetary policy easing continues.

With inflation now down to 8 percent in October, the central bank has taken another bold step by reducing the policy rate to 18 percent, a deep cut of 350 basis points.

This marks a drastic fall from the 27 percent recorded… pic.twitter.com/Qws5MY9ocH

— Cassiel Ato Forson (PhD) (@Cassielforson) November 26, 2025

The MPC said risks that could push inflation off its target path have significantly eased. It noted that high real interest rates provide space to loosen policy while still supporting disinflation momentum. The bank expects inflation to remain broadly stable around its objective through the first half of 2026.

The central bank’s announcement comes as Ghana’s economic activity accelerates. GDP expanded by 6.3% in the first half of 2025. The Ghana Statistical Service’s monthly economic activity indicator projected growth of 5.1% for August 2025, driven by services and agriculture.

The cedi strengthened as the balance of payments recorded a surplus and foreign reserves increased. Gross international reserves reached $11.4 billion in October 2025, equivalent to 4.8 months of import cover, up from four months at the end of 2024. This improvement supported a 32.2% appreciation of the cedi against the U.S. dollar through 21 November 2025.

Ghana’s Finance Minister, Cassiel Ato Forson, said the rate cut “shows renewed confidence in the economy and results in lower borrowing costs, better access to credit and greater room for businesses and individuals to grow, invest and create jobs.”

This article was initially published in French by Lydie Mobio

Adapted in English by Ange Jason Quenum