Ghana holds third-highest interest rate in Sub-Saharan Africa
Ghana continues to maintain one of the highest benchmark interest rates in Sub-Saharan Africa, holding steady at 21.5 per cent despite significant monetary easing throughout 2025.
The latest Africa’s Pulse Report released by the World Bank in October 2025 ranks Ghana behind only Nigeria (27 per cent) and Malawi (26 per cent) in terms of policy rate levels.
According to the report, the Bank of Ghana (BoG) has cumulatively reduced its Monetary Policy Rate (MPR) by 7.5 percentage points this year, as inflationary pressures eased and economic stability improved.
The most recent cut came in September 2025, when the Monetary Policy Committee (MPC) announced a 350-basis-point reduction, bringing the benchmark rate to its lowest level since October 2022.
The decision reflects growing optimism about Ghana’s macroeconomic outlook, supported by a sustained decline in inflation, stronger external reserves and steady growth across key productive sectors such as agriculture, mining and services.
However, the World Bank observed that monetary conditions in Ghana remain relatively tight compared to many regional peers. Countries like Kenya, Mozambique, Lesotho and South Africa have moved deeper into their easing cycles, while Rwanda and Uganda have maintained stable policy rates for several months.
“While Ghana’s monetary stance reflects the authorities’ commitment to price stability, the pace of easing remains cautious compared to other African economies,” the report stated.
The World Bank noted that the BoG’s gradual approach supports long-term macroeconomic stability by anchoring inflation expectations.
Nonetheless, it suggested that a more aggressive easing cycle could help reduce lending costs, stimulate private sector investment and enhance trade competitiveness.
The report also warned that global headwinds, such as commodity price volatility, uncertainty in advanced economies and tight global financial conditions, could slow the pace of monetary normalisation across the continent.
Still, it said countries like Ghana, which have demonstrated credible policy frameworks and improving inflation dynamics, possess the flexibility to cautiously relax monetary policy without undermining stability.
The nation’s rate-cutting cycle began in early 2025, following notable progress in taming inflation, which had peaked at over 50 per cent in 2023 but has since declined to single digits as of September 2025.
