The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has announced a sharp reduction in the policy rate, slashing it from 28% to 25%.
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Governor Dr. Johnson Asiama, who chairs the committee, made the announcement at a press briefing in Accra on Wednesday, July 30. He revealed that the decision was backed by a majority vote from the seven-member committee.
“The MPC, by a majority decision, voted to lower the monetary policy rate by 300 basis points to 25.0%. Looking ahead, the Committee will continue to assess incoming data and likely reduce the policy rate further should the disinflation trend continue,” he stated.
The move is aimed at supporting economic recovery while maintaining the central bank’s price stability mandate.
Dr. Asiama noted that although there are potential inflationary risks, such as global supply chain disruptions and possible upward adjustments in utility tariffs, the BoG is confident that a tight monetary policy stance and continued fiscal consolidation will keep inflation in check.
Ghana’s inflation rate currently stands at 13.7%.
Background: Why It Matters
The policy rate serves as the benchmark for lending rates in the economy. A lower rate is expected to stimulate borrowing and investment, particularly in the private sector, thereby boosting economic activity.
The central bank’s move signals growing confidence in the country’s disinflation progress and its broader economic outlook.
