The Bank of Ghana (BoG) has announced a reduction in the Monetary Policy Rate (MPR) from 18% to 15.5%, marking its first policy decision of 2026. This 250-basis-point cut was made by a majority decision of the Monetary Policy Committee (MPC) and was revealed by Governor Dr. Johnson Asiama during a press briefing at Bank Square on Wednesday, January 28.
This 250-basis-point cut is expected to have a positive impact on businesses, as it will likely lead to lower lending rates, making borrowing cheaper and increasing access to credit. This implies that businesses can benefit from lower interest rates on overdrafts, inventory loans, and project financing, easing liquidity constraints
The latest reduction follows a significant 350-basis-point decrease in November 2025, when the MPR was lowered from 21.5% to 18% in response to easing inflationary pressures. Dr. Asiama emphasized that the decision reflects anticipated improvements in key macroeconomic indicators both domestically and globally.
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 stated. He reiterated the Bank's commitment to a measured and forward-looking policy stance.
This move signals the central bank's continued support for growth while maintaining a cautious approach to price stability.
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