BoG Reduces Policy Rate to 14%
The Bank of Ghana has reduced the Monetary Policy Rate (MPR) by 150 basis points to 14% following the 129th Monetary Committee meeting.
Addressing the press on March 18, 2026, the Governor of the Central Bank, Johnson Asiama, said the Committee had thoroughly reviewed prevailing global and domestic conditions.
On the ongoing Middle East tension, he commented that the conflict had disrupted the global supply chain, increased global market volatility, financial stability concerns and heightened global uncertainty.
Meanwhile, on the local front, it observed positive consumer and business sentiments on account of easing inflationary pressures, optimism about future economic conditions, realisation of operational targets, and optimism about industry prospects amid improving macroeconomic conditions.
It comes after the BoG reduced the MPR to 15.5% following the 128th Monetary Policy Committee Meeting, citing strengthened and stabilised local currency and easing inflation for the measure.
The reduction after the King of the Asante Kingdom, Otumfuo Osei Tutu II, sounded a clarion call about the impact of the high interest rates on the economy and businesses.
During a visit to Bank Square on January 7, 2026, His Majesty issued an alert about the seeming neglect of interest rates, with exchange rates unavoidably overshadowing attention.
While falling on experience, Otumfuo suggested that the Bank of Ghana (BoG) needed to accelerate the pace of interest rate reduction.
The Asantehene posited that no amount of government intervention or international investment guaranteed development like domestic private investment.
“The challenge I leave with your creative brains is to fashion how you move the economy from the crippling high-interest regime to a level where it becomes a stimulant of business and wealth creation,” the Asantehene said during a visit to the Bank Square on January 7, 2026.
Story by Hajara Fuseini
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