• The Bank of Ghana cut its policy rate by 250 basis points to 15.5% on January 28, 2026.
• Inflation fell sharply to 5.4% in December 2025 from 23.8% a year earlier, dropping below target.
• The cedi strengthened 40.7% against the dollar in 2025, supported by higher reserves and a balance-of-payments surplus.

The Monetary Policy Committee of the Bank of Ghana reduced its main policy rate by 250 basis points to 15.50% from 18%, according to a central bank statement published on Wednesday, January 28, 2026.

The central bank said overall macroeconomic conditions improved significantly and noted that “headline inflation declined sharply since the beginning of the year, falling from 23.8% in December 2024 to 5.4% in December 2025,” bringing inflation below the Bank’s target. The Bank said it expects inflation to remain stable around its target through the first half of 2026.

At the same time, the Bank said downside risks to the inflation outlook declined markedly. In this context, the still-elevated level of real interest rates gives the Bank of Ghana room to further ease monetary policy while supporting the ongoing economic recovery.

The rate cut comes as Ghana’s economic growth shows solid momentum. Over the first three quarters of 2025, gross domestic product expanded by 6.1%, driven mainly by the services and agriculture sectors.

Meanwhile, the cedi strengthened, supported by a balance-of-payments surplus and a buildup of foreign exchange reserves that reached $13.8 billion in December 2025, equivalent to 5.7 months of imports, compared with 4.1 months a year earlier. This trend allowed the Ghanaian currency to appreciate by 40.7% against the dollar in 2025, following a 19.2% depreciation in 2024.

Ingrid Haffiny (intern)