BoG Cuts Policy Rate to 14% amid improved domestic conditions
By Nii Trebi Hammond
The Bank of Ghana has reduced its policy rate by 150 basis points to 14 percent, as inflation drops to 3.3 percent.
Governor Dr. Johnson Asiama announced the decision after the latest Monetary Policy Committee meeting, citing sustained improvements in macroeconomic conditions.
Inflation declined from 5.4 percent in December 2025 to 3.3 percent in February 2026, driven by easing food and non-food prices. Core inflation also slowed, indicating reduced underlying price pressures.
The rate cut is expected to gradually lower borrowing costs for businesses and households, with Treasury bill rates already trending downward and private sector credit picking up.
However, the central bank warned that rising geopolitical tensions in the Middle East could pose risks to the inflation outlook through higher oil prices.
The Bank said it will continue to monitor developments and take appropriate action to maintain price stability.
The next MPC meeting is scheduled for May 18–20, 2026.
