Economist Predicts Policy Rate Cut to 17-20% After MPC Meeting
By Praisebell Rosemond Larbi
Senior Economist at the Centre for Impact Africa, Dr. Samuel Worlanyo Mensah, has projected that the Bank of Ghana’s Monetary Policy Committee (MPC) could cut the policy rate to between 17 and 20 percent at its upcoming and final meeting for 2025, reflecting easing inflation pressures, strong currency performance, and improving investor confidence.
In an interview with The New Finder, Dr. Mensah said the prevailing macroeconomic indicators present “a strong case” for a rate reduction from the current 21.5 percent, as inflation trends continue downward and real interest rates remain positive.
“Given the consistent decline in inflation, which has now dropped to 8 percent, the lowest in four years and the stability of the cedi, the central bank now has the fiscal and monetary space to ease the policy rate. A reduction to somewhere between 17 and 20 percent would help lower borrowing costs, stimulate private sector investment, and further support the economic recovery we are witnessing,” he added.
The Monetary Policy Committee is scheduled to hold its 127th regular meeting from November 24 to 26, 2025, to review key economic indicators and announce its policy decision. Analysts and market participants are closely watching the outcome, as it could mark a turning point for Ghana’s post-stabilization growth strategy.
Macroeconomic Context
Ghana’s inflation has fallen steadily for ten consecutive months, reaching 8.0 percent in October 2025, down from 54 percent at its peak in early 2023. The decline has been driven by a stable local currency, easing food prices, and improved supply chain conditions.
The cedi has appreciated by 37 percent against the US dollar so far this year, earning it the title of best-performing currency in Sub-Saharan Africa according to the World Bank. The strong exchange rate has helped anchor inflation expectations and restore business confidence.
