Bank of Ghana slashes policy rate to 15.5%

The Bank of Ghana has cut its key monetary policy rate by 250 basis points, reducing it from 18 per cent to 15.5 per cent in a move expected to ease borrowing costs for businesses and households.

The decision, announced at the 128th meeting of the Monetary Policy Committee (MPC) on Wednesday, January 28, 2026, signals a notable shift in the country’s monetary stance as inflationary pressures continue to ease.

Speaking at a press briefing in Accra, the Governor of the Bank of Ghana and Chair of the MPC, Dr Johnson Asiama, said the rate cut was underpinned by sustained disinflation and positive macroeconomic trends. He expressed confidence that inflation will remain contained in the short to medium term.

The policy rate serves as a benchmark for interest rates across the financial sector, meaning the reduction is expected to translate into lower lending rates and increased access to credit, potentially stimulating investment and economic activity.

Dr Asiama also highlighted the improved performance of the cedi, noting that the local currency has shown resilience and appreciated against major international currencies, particularly the US dollar.

He added that broader economic indicators point to a strengthening macroeconomic environment, providing the MPC with the assurance needed to support growth while preserving price stability.

Data from the Ghana Statistical Service indicate that inflation declined to 5.4 per cent year-on-year in December 2025, reinforcing the central bank’s confidence in its current policy direction.