Bank of Ghana Cuts Monetary Policy Rate by 350 Basis Points to 21.50% in Accelerated Easing

The Bank of Ghana's Monetary Policy Committee cut the country's benchmark monetary policy rate by 350 basis points to 21.50% at its September 2025 meeting, extending an easing cycle that has taken the rate from 28.00% across just two meetings — a cumulative reduction of 650 basis points. The committee signalled confidence that inflation was converging towards its 8% ±2% target band by the end of 2025.

Ghana's monetary policy rate was raised during the 2022–2024 period as the country navigated a currency crisis, a sovereign debt restructuring, and inflation that at its peak rose well above 50%.

INFLATION CONVERGING TOWARDS TARGET

Ghanaian headline inflation has declined from its peak, and the Bank of Ghana's projections indicate that the convergence towards the 8% ±2% target band is on course for the fourth quarter of 2025.

The Bank of Ghana has attributed the disinflation to a combination of tight monetary conditions maintained through 2023 and 2024, exchange rate stabilisation following the cedi's sharp depreciation, and the dampening effect of fiscal consolidation on domestic demand.

The committee said it would continue to monitor macroeconomic developments and take appropriate policy decisions as and when necessary to reinforce the disinflation process.