The Monetary Policy Committee (MPC) of the Bank of Ghana has, by a majority decision, reduced the policy rate by 350 basis points to 18%, down from 21.5%.

The announcement was made by the Chair of the Committee and Governor of the Bank of Ghana, Dr. Johnson Asiama, during the 127th MPC press briefing in Accra on Wednesday, November 26.

According to Dr. Asiama, inflation has declined steadily throughout the year and remains within target, contributing to the committee’s decision.

“The view of the committee is that overall macroeconomic conditions have broadly improved,” he stated.

He further explained that the reduction reflects significant progress in key economic indicators, including an expected sharp decline in inflation by year-end, tighter fiscal and monetary controls, and a strong accumulation of foreign reserves supporting exchange rate stability.

The Bank projects that inflation will remain stable around target into the first half of 2026, noting that the existing high real interest rates create room to stimulate Ghana’s ongoing economic recovery.

“Given the anticipated significant decline in inflation by the end of the year, the tight monetary policy stance, and the significant build-up of reserves anchoring exchange rate stability, the committee voted to lower the monetary policy rate further by 350 basis points to 18.0%,” Dr. Asiama said.

He added that the MPC will continue to monitor economic developments and adjust policy where necessary to sustain stability.

In addition to the rate cut, the Bank of Ghana has announced a return to the use of the 14-day bill as its primary instrument for open market operations.

The next MPC meeting is scheduled for January 26–28, 2026, with the policy decision expected to be announced on January 28.