An economist, Dr Theo Acheampong, has stated that Ghana’s current inflation rate should prompt a reduction in the Bank of Ghana’s Monetary Policy Rate.

According to him, the Central Bank can now afford to lower the rate by at least 100 basis points.

The Ghana Statistical Service (GSS) recently announced a significant decline in the country’s inflation rate for June 2025, which fell to 13.7%, down from 18.4% in May 2025.

This represents a 4.7 percentage point drop in just one month and is the lowest inflation rate recorded since December 2021.

Reacting to the announcement on July 2, 2025, Dr Acheampong posted on X (formerly Twitter) stating, "The drop in inflation should give the Bank of Ghana Monetary Policy Committee (MPC) room to cut the policy rate a few notches down by at least 100 basis points, and further during the course of the year on improved inflation expectations."

He also noted that the decline in inflation was supported by the appreciation of the cedi, signalling a potential improvement in the standard of living for Ghanaians.

"Ghanaians could see this in improved cost of living and bank lending rates coming down in the coming months. Ghana’s inflation for June 2025 has slowed significantly to 13.7%, driven by declines in both food and non-food inflation, supported by the appreciating cedi and an improved external front."

Dr Acheampong further remarked that the ceasefire in the Israel-Iran conflict is contributing to a moderately stable external environment in the medium term.

The sharp drop in inflation may signal easing price pressures after months of high inflation driven by rising food costs, currency depreciation, and global supply chain disruptions.

It may also reflect the positive effects of recent fiscal and monetary interventions aimed at stabilising the economy.

The Bank of Ghana’s Monetary Policy Rate currently stands at 27%.

Ghana's inflation for June 2025 slows significantly to 13.7% drivien by both food and non-food inflation declines, and which are supported by the appreciating Cedi and improved external front.

With Israel-Iran conflict ceasefire holding, the external front looks moderately… pic.twitter.com/jgxXbGJ0CN

— Theo Acheampong, PhD (@mytheoz) July 2, 2025