BoG cuts monetary policy rate to 15.5%

The Bank of Ghana (BoG) has reduced its monetary policy rate to 15.5 per cent, signalling a shift toward easing monetary conditions as inflationary pressures show signs of moderation.

The decision, announced after a meeting of the Monetary Policy Committee (MPC), is aimed at supporting economic recovery by lowering borrowing costs for businesses and households while maintaining price stability.

According to the central bank, recent macroeconomic developments indicate improved stability in the economy, driven by tighter fiscal discipline, relative exchange rate stability, and a slowdown in inflation.

These conditions, the BoG noted, provide room for a cautious reduction in the policy rate.

Dr Johnson Asiama, Governor of the Bank of Ghana, announced a reduction in the country’s monetary policy rate during a press briefing at Bank Square on Wednesday, January 28, following the 128th Monetary Policy Committee (MPC) meeting.

The move comes after a substantial 350-basis-point cut in November 2025, when the MPR was lowered from 21.5% to 18% amid easing inflationary pressures. With the latest reduction of 250 basis points, the central bank is signaling ongoing support for economic growth while maintaining a cautious stance on price stability

“The committee voted to lower the monetary policy rate by 250 basis points to 15.5%. We will continue to monitor developments closely and take appropriate policy actions as necessary,” Dr. Asiama said.

The governor explained that the decision reflects expectations of improvements in key macroeconomic indicators both at home and abroad. The move is intended to encourage borrowing, stimulate investment, and support the broader economy while keeping inflation under control.

The policy rate serves as a benchmark for interest rates in the banking sector. A reduction is expected to encourage commercial banks to lower lending rates, improve access to credit, and stimulate private sector activity, particularly for small and medium-sized enterprises.