The Bank of Ghana (BoG) raised approximately GH¢155 million in its latest auction of BoG bills held on Wednesday, July 9, 2025, at an interest rate of 23%.

This marks a significant drop from previous auctions and is being closely watched by market analysts as a potential signal of an upcoming monetary policy shift.

Just two days earlier, on July 7, 2025, the central bank secured GH¢825 million at a higher rate of 26.5%, while a week prior, on July 2, 2025, it raised GH¢250 million at 27.9%.

The steady decline in rates amounting to a 490 basis point drop in just seven days indicates a notable easing in short-term borrowing costs.

Some analysts attribute the downward trend in BoG bill rates as a precursor to a possible reduction in the central bank’s benchmark policy rate.

BoG bills are often viewed as a proxy for monetary policy direction and their declining yields suggest a more accommodative stance may be on the horizon.

The prospect of a policy rate cut is further supported by Ghana’s improving inflation outlook.

Headline inflation fell to 13.7% in July 2025, down from 18.4% in the same month last year a 470 basis point decline.

The sustained disinflationary trend has strengthened the case for monetary easing, as the central bank may now have room to shift its focus from price stability toward supporting economic growth.

SP/MA

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