BoG Reduces Policy Rate to 18%

The Bank of Ghana has reduced the Monetary Police Rate to 18% from 21.5%.

This reflects a 350 basis points reduction, the Governor of the Central Bank, Johnson Asiama, announced on November 26, 2025, at the end of a Monetary Policy Committee meeting.

This decision followed a review of recent economic developments and risk assessment, which showed steady growth despite major policy shifts and easing headline inflation on the global front.

He also cited strong growth, strong composite index of economic activity, improved purchasing index, sustained disinflation, strong fiscal consolidation and improved current account on the domestic front.

“In taking the policy decision, the view of the committee was that overall macroeconomic conditions have broadly improved given the anticipated significant decline in inflation by the end of the year, the tight monetary stance, the significant buildup of reserves, which is proving an anchor for exchange rate stability,” he told the press.
The Bank projects a continued, stable profile around the target and well into the first half of next year.

From the Committee’s observation, the outlook to shift the path of inflation from target has moderated significantly.

He also said the decision is to ease the prevailing interest rate to boost the growth recovery effort.

In addition to the policy rate reductions, he said the Bank will now return to the 14-day bill as its main instrument for conducting open market operations.

“The committee will continue to monitor developments and take the appropriate policy decisions and ensure sound and stable macroeconomic conditions.”

The next MPC meeting is scheduled for January 26 to January 28.

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