BoG’s MPC Opens 127th Meeting as Markets Eye Fresh Policy Easing
The Bank of Ghana’s Monetary Policy Committee (MPC) yesterday opened its 127th regular meeting, amid heightened expectations of a possible policy rate cut as the country’s macroeconomic outlook continues to improve.
The meeting, which began on 24 November 2025, will review recent economic developments and guide the central bank’s policy direction for the closing weeks of the year. It comes on the back of a period of relative currency stability, easing inflation and stronger-than-expected growth indicators.
The Ghana cedi, which experienced a brief episode of volatility earlier in the year—described by the central bank as a “market correction”—remained fairly stable for several months. However, it has shown marginal depreciation in recent weeks, driven by increased demand for foreign exchange ahead of the Christmas trading season.
Inflation has also continued its downward trajectory. Consumer inflation declined to 8 percent in October, supported by tight monetary conditions, fiscal consolidation and improved food supply conditions. The outturn sits comfortably below the 11.9 percent year-end target, reinforcing arguments for continued monetary easing.
Growth figures have equally been encouraging. Real GDP, including oil, expanded by 6.3 percent in the second quarter of 2025, compared with 5.1 percent in 2024. Non-oil GDP recorded an even stronger 7.8 percent growth, up from 5.7 percent last year, with services, construction and agriculture driving activity.
The central bank has already embarked on one of its most aggressive easing cycles in recent years. In September, the MPC cut the benchmark policy rate by 350 basis points to 21.5 percent, following a 300-basis-point reduction in July that brought the rate down from 28 percent to 25 percent.
Governor of the Bank of Ghana, Dr Johnson Asiama, noted that the earlier rate cuts were aimed at boosting credit expansion and supporting the recovery, though he cautioned that “risks remain elevated”, citing the possibility of utility tariff adjustments and persistent exchange rate pressures.
With inflation now at 8 percent—leaving the real policy rate still significantly positive—many analysts believe the Committee has room to ease further. Some economists predict a cut of between 100 and 250 basis points, assuming continued fiscal discipline and limited external shocks from global commodity prices and foreign exchange markets.
However, the recent softening of the cedi may weigh on the Committee’s considerations, as the MPC seeks to balance recovery efforts with the need to maintain currency stability during the high-demand festive period.
The meeting is expected to conclude tomorrow, 26 November 2025, with a press briefing at which the Bank of Ghana will announce its policy rate decision and present its latest economic outlook.
The Securities and Exchange Commission (SEC) has issued a stern caution to the investing public regarding the proliferation of suspected fraudulent investment schemes, commonly referred to as “money doubling” schemes, currently being advertised on some television stations across the country.
According to the Commission, these schemes are designed to entice unsuspecting individuals with promises of unusually high returns delivered within a short period of time, often with little or no risk attached. Such characteristics, the SEC explained, are typical of fraudulent operations that prey on the financial aspirations of ordinary citizens, luring them into parting with their hard-earned money under false pretenses.
