BoG Reduces Monetary Policy Rate to 25%
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has reduced the Monetary Policy Rate (MPR) by 300 basis points to 25%.
The decision was reached during the MPC’s 125th regular meetings, which began on Monday, July 28, 2025, to evaluate recent economic developments and risks to the inflation outlook.
The Committee considered the global and domestic economic outlook to arrive at the decision.
From a global perspective, it saw increased economic and trade policy uncertainties, but from the domestic standpoint, it said the economy was buoyant in the first quarter of 2025.
“Overall, the Committee noted that macroeconomic conditions have significantly improved, inflation expectations are broadly anchored, external buffers have strengthened, and confidence in the economy is returning.
“The July forecast also shows that headline inflation is expected to decline further in the third quarter of 2025 and trend within the medium-term target of 8±2 per cent by the end of 2025, earlier than initial projections.
“However, there are upside risks to the inflation outlook, which include potential supply chain challenges emanating from the global trade tensions, and upward adjustment in utility tariffs. This notwithstanding, the impact of these risks on inflation is expected to be offset by appropriately tight monetary policy stance and continued fiscal consolidation.”
Source: https://opemsuo.com/author/hajara-fuseini/
