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# Bank of Ghana cuts monetary policy rate by 100 basis points to 29% in January 2024
- URL: https://www.theglobalbanker.com/bank-of-ghana-cuts-monetary-policy-rate-by-100-basis-points-to-29-in-january-2024/
- Published: 2024-01-29T11:29:00.000Z
- Updated: 2026-11-03T22:33:49.000Z
- Description: Ghana's central bank made its first cut to the policy rate after holding it at 30% since July 2023, citing a fall of more than 30 percentage points in headline inflation over 2023.
- Author: TGB Editorial Team
- Tags: Central Banks, Africa, #archive

The Bank of Ghana’s Monetary Policy Committee (MPC) cut the monetary policy rate by 100 basis points to 29% on 29 January 2024, the first reduction after the rate had been held at 30% since July 2023\. Governor Ernest Addison announced the decision at the 116th MPC press briefing in Accra.

The Governor attributed the move to progress in bringing down inflation. “Headline inflation declined sharply by more than 30 percentage points in the course of 2023,” he said. Consumer price inflation fell from 53.6% in January 2023 to 23.2% in December 2023, down from 26.4% in November.

#### DRIVERS OF DISINFLATION

The Bank cited sustained monetary tightening through 2023, favourable international crude oil prices and a relatively stable exchange rate as factors supporting the disinflation process. It projected that headline inflation would ease to between 13% and 17% by the end of 2024, and return to the medium-term target range of 6% to 10% in 2025.

The Committee cautioned that there were upside risks to the inflation outlook. It said strict implementation of the 2024 budget and a continued tight monetary policy stance would be needed to sustain the disinflation process.

#### GROWTH AND BANKING SECTOR

On the wider economy, the Governor said economic activity was recovering gradually, supported by the positive results of the International Monetary Fund’s Extended Credit Facility programme, although growth remained below potential and required policy support.

He also said that liquidity and profitability in the banking sector had improved following the domestic debt restructuring, and that early recapitalisation efforts by banks should strengthen financial stability.