BoG's Big Move: Monetary Policy Rate Cut to Boost Employment and Economic Growth

The Bank of Ghana has reduced its Monetary Policy Rate by 350 basis points to 18 percent. This marks one of the steepest policy easing decisions in recent years.

The Central Bank cut the rate over sustained progress in taming inflation, a stabilising currency and improved macroeconomic conditions that create room to support growth.

The Bank of Ghana's decision to slash its Monetary Policy Rate from 21.5% to 18% is expected to have a significant impact on employment and economic expansion.

According to Governor Dr. Johnson Asiama, the economy has entered a period of improved stability, with a strong rebound in the external sector and a stable inflation profile. This has created room for the Central Bank to reduce the policy rate, making borrowing cheaper and increasing access to credit for businesses and households.

The reduction is expected to translate into lower lending rates, offering relief to businesses and households that have struggled with high borrowing costs. This, in turn, is expected to lead to increased employment and expansion of production, contributing to the overall development of the country.

With risks to the inflation outlook receding and real interest rates remaining significantly high, the Committee judged that conditions were right to reduce the policy rate to stimulate economic activity," Dr. Asiama said.

The move is also expected to boost economic growth, with the Central Bank projecting a continued stable inflation profile around the target and well into the first half of next year.

Governor Dr. Johnson Asiama stressed that "The economy has entered a period of broadly improved stability, anchored by a strong rebound in the external sector."

According to the Monetary Policy Committee, it will continue to closely monitor domestic and external developments and take necessary policy actions to sustain the current economic momentum. This latest reduction brings the total policy rate cut to 1,000 basis points in 2025 alone, making it one of the most aggressive easing cycles in recent years.

Comments

UK-Ghana Trade & Investment Summit: Trade Resource Centre to help businesses maximise UK-Ghana trade opportunities

In a significant boost to UK-Ghana trade and investment relations, the UK-Ghana Chamber of Commerce (UKGCC), in partnership with the UK-Ghana Jobs and Economic Transformation (JET) Programme, has launched the UK-Ghana Trade Resource Centre, a practical market-access platform designed to help businesses identify opportunities, navigate export requirements and build commercial partnerships between Ghana and the United Kingdom. The UK and Ghana enjoy strong trade relations, with total bilateral trade reaching approximately £1.6 billion in the year to Q1 2026. Yet, despite this progress, significant untapped opportunities remain for businesses in both countries. The Trade Resource Centre has been established to help bridge information gaps, connect businesses with the right partners, and support firms to take greater advantage of opportunities under the UK-Ghana Trade Partnership Agreement. The launch formed one of the major outcomes of the UK-Ghana Trade & Investment Summit 2026,...

NESCAFÉ Launches Real Vibes Text & Win Promo to Reward Coffee Consumers Across Ghana

NESCAFÉ has launched the Real Vibes Text & Win Promo, an exciting consumer promotion designed to reward loyal coffee lovers and bring the brand’s My Coffee, My Vibe experience even closer to consumers across the country. Running from September to December, the promotion gives consumers the opportunity to enjoy their favourite NESCAFÉ coffee while standing a chance to win exciting prizes, including phones, motorcycles, airtime and the ultimate grand prize—an electric SUV. Speaking at the launch, Lily Ntim, Category Development Manager for NESCAFÉ, said the promotion reflects NESCAFÉ’s commitment to creating, rewarding and memorable experiences for consumers. “Today, we are excited to introduce the NESCAFÉ Real Vibes Text & Win Promo, a campaign designed to bring the My Coffee, My Vibe experience even closer to our consumers,” she said. She added that the campaign is not only about prizes, but also about celebrating the everyday moments consumers enjoy with their coffee. “T...

Ghana Home Loans

With interest rates declining, a more liquid environment and a macroeconomic stability, mortgage financing is expected to see an ease of credit. And Ghana Home Loans being a leader in this industry is expected to lead the way. Ghana Home Loans (GHL), a leader in home mortgage, continues to be the frontier in fulfilling dreams of many Ghanaians in homeownership. Since starting business in 2006, it has also provided many existing homeowners with Equity Release mortgages to support their businesses, pay educational fees, improve their properties, or simply pursue other personal hobbies and interests. Ghana Home Loans is a mortgage finance institution which operates under Bank of Ghana’s supervision as a non-bank financial institution. At present, the Company remains the only such institution that focuses exclusively on the provision of mortgage product. Through the Home Completion mortgage and Home Construction mortgage products, Ghana Home Loans has enabled many qualified applican...

Kofi Ahovi

Search This Blog