Bank of Ghana cuts monetary policy rate to 15.50% amid falling inflation

The Bank of Ghana’s Monetary Policy Committee (MPC) has lowered the Monetary Policy Rate (MPR) by 250 basis points to 15.50 percent, citing improved macroeconomic conditions, falling inflation, and a strengthening domestic economy.

The Committee held its 128th regular meeting from January 26 to 28, 2026, to assess economic developments and risks to growth and inflation. In a statement issued on January 28, the MPC said the decision was guided by “significant improvements in macroeconomic conditions supported by tight monetary policy, fiscal consolidation, and a substantial build-up of reserves.”

The Bank highlighted that headline inflation fell sharply from 23.8 percent in December 2024 to 5.4 percent in December 2025. Core inflation, which excludes energy and utility prices, also eased, reflecting muted underlying price pressures.

ALSO READ: NPP Primaries 2026: 32 Years, 4 Presidential Candidates - The Journey of NPP Since 1992

“Inflation expectations across consumers, businesses and the financial sector remain well anchored,” the Committee noted.

Economic growth has also gained momentum. Preliminary data from the Ghana Statistical Service showed that real GDP expanded by 6.1 percent in the first three quarters of 2025, up from 5.8 percent in the same period of 2024. Non-oil GDP grew by 7.5 percent, driven primarily by the services and agriculture sectors. The Bank’s Composite Index of Economic Activity rose 8.8 percent in November 2025, compared with 1.5 percent in November 2024.

ALSO READ: Kpandai MP Matthew Nyindam reacts after Supreme Court restores his seat

The Committee said private-sector credit rebounded to 13.1 percent growth, supported by lower lending rates, which declined to 20.45 percent from 30.25 percent over the year. Money market rates fell sharply, with the 91-day Treasury bill rate at 11.08 percent in December 2025 compared with 27.73 percent a year earlier.

The external sector also performed strongly, with a provisional current account surplus of US$9.1 billion and gross international reserves rising to US$13.8 billion, equivalent to 5.7 months of import cover. The cedi appreciated by 40.7 percent against the US dollar in 2025, supported by favourable global conditions, prudent monetary policy, and reserve accumulation.

ALSO READ: Kpandai rerun halted as Supreme Court quashes Tamale High Court ruling

On the outlook, the MPC said, “With stability largely achieved, the focus of policy is shifting towards consolidating gains, supporting stronger real sector recovery, job creation, and improved financial intermediation.”

The rate cut marks a transition from stabilisation to growth. It lowers borrowing costs, supports business recovery, and confirms that inflation is no longer the dominant threat.