BOG Cuts Policy Rate

BoG Cuts Policy Rate to 21.5% Amid Declining Inflation

September 17, 2025

The Bank of Ghana (BoG) has reduced its benchmark policy rate by 350 basis points to 21.5 percent, citing easing inflationary pressures and the need to stimulate credit growth.

The decision, announced by Governor Dr. Johnson Asiama at the end of the 126th Monetary Policy Committee (MPC) meeting on Wednesday, marks the second major rate cut this year. In July, the policy rate was lowered from 28 percent to 25 percent following a marginal hike in March.

Dr. Asiama noted that headline inflation is expected to fall within the medium-term target band of 8 ± 2 percent by the fourth quarter. However, he cautioned that proposed upward adjustments in utility tariffs could exert price pressures in the medium term.

“The Committee will continue to monitor macroeconomic developments and take the appropriate policy decisions to reinforce the disinflation process,” he said.

The Governor further attributed the rate cut to ongoing fiscal consolidation efforts, improved monetary policy reforms, and adequate reserve buffers, despite risks to currency stability.