The Bank of Ghana (BoG) has slashed its benchmark policy rate by 350 basis points to 21.5%, marking the second major interest rate cut this year. The move, approved by a majority of the Monetary Policy Committee (MPC), is aimed at stimulating credit growth and strengthening Ghana’s economic recovery amid declining inflationary pressures.

The announcement was made by BoG Governor, Dr. Johnson Asiama, at the close of the Bank’s 126th MPC meeting held on Wednesday, September 17, 2025.

This latest cut follows a 300-basis-point reduction in July, which lowered the rate from 28% to 25%. Earlier in March, the policy rate had been raised slightly from 27% to 28%, before being held steady at the May meeting.

Dr. Asiama explained that the decision reflects expectations of continued fiscal discipline and monetary reforms, noting that headline inflation is projected to fall within the medium-term target of 8 ± 2 percent by the end of Q4 2025. He acknowledged potential risks from a possible review of utility tariffs but assured that strong sterilization measures, fiscal consolidation, and robust reserve buffers would sustain the disinflation process.

On concerns about the stability of the Ghanaian cedi, Dr. Asiama dismissed fears of volatility, stressing that the central bank has taken decisive measures to safeguard macroeconomic stability. He emphasized that Ghana’s foreign exchange reserves remain strong enough to support the cedi, particularly during the upcoming festive season.

“We have a perfect cash flow and we have figured everything out,” the Governor assured.

The BoG’s rate cut is expected to ease borrowing costs, encourage private sector credit expansion, and accelerate Ghana’s recovery.