Ghana’s Central bank, on Wednesday, November 26, announced a 350-basis-point reduction in the benchmark lending rate, lowering it from 21.5 percent to 18 percent. Governor Johnson Asiama, speaking at the Monetary Policy Committee’s regular press briefing, said the decision reflects a sustained improvement in the inflation outlook. And a desire to stimulate economic growth.
He noted that inflation is expected to fall further by the end of the year, supported by tight monetary policy, strong reserve accumulation and exchange rate stability. With inflation projected to remain within the target band of 6 to 10 percent well into the first half of 2026, Asiama said the MPC now has scope to ease interest rates given the high lending rates maintained by commercial banks.
Asiama reaffirmed the committee’s commitment to monitoring economic conditions and taking timely decisions to safeguard macroeconomic stability. The announcement comes as the International Monetary Fund concluded its fifth review of Ghana’s three-year Extended Credit Facility programme, highlighting significant progress in restoring stability. Inflation fell sharply to 8 percent in October, down from 23.5 percent in January, reinforcing confidence in the country’s ongoing reform efforts.