The Bank of Ghana has reduced its monetary policy rate by 300 basis points, from 28 percent to 25 percent.

The decision was unanimously approved by the Monetary Policy Committee (MPC) of the Central Bank following its 125th scheduled meeting.

Chairman of the MPC, Dr Johnson Asiama, speaking to the media on July 30, 2025, explained that the move reflects improving macroeconomic conditions, a steady decline in inflation, and renewed investor and consumer confidence.

“The Committee noted that inflation is on a firm downward path, external buffers have improved, and confidence in the economy is gradually returning,” Dr Johnson Asiama said.

“With headline inflation projected to fall within the medium-term target of 8±2% by the end of 2025, earlier than initially expected, it was necessary to adjust the policy stance to support the recovery,” he added.

Headline inflation declined to 13.7% in June 2025, down from 54% at the end of 2022. The Bank of Ghana projects a further drop in inflation during the third quarter of this year.

Dr Asiama explained that the bold rate cut reflects confidence in the strength of the disinflation process and the government’s ongoing fiscal consolidation efforts.

“While there are still risks, including global supply chain pressures and possible utility tariff adjustments, we believe these will be mitigated by prudent fiscal and monetary management,” he stated.

The Governor further noted that the MPC remains ready to ease the policy rate again if current trends continue.



MA