Ghana's Central Bank Lowers Key Interest Rate Amid Slowing Inflation

 Ghana's central bank has reduced its key interest rate for the first time in over a year, as inflation continues to slow and the national currency strengthens. The rate was lowered from 28% to 25%, announced Johnson Pandit Asiama, the head of the regulator.

"The Monetary Policy Committee, by a majority vote, decided to reduce the base interest rate by 300 basis points to 25.0%. The committee will continue monitoring incoming data and, if the trend of decreasing inflation persists, will likely proceed with further monetary policy easing," the statement read.

This decision comes amidst the stabilization of the country's economic situation. Annual inflation continued to decelerate, reaching 13.7% in June 2025 compared to 18.4% in May, the lowest level since December 2021.

"The slowdown in inflation was enabled by a strict monetary policy stance, measures for fiscal consolidation, improved food supply conditions, and the strengthening of the cedi (Ghana's currency). Additionally, inflation expectations among banks, consumers, and businesses remain generally stable," noted the central bank head.

In early July, the IMF approved a $367 million disbursement for Ghana under its extended credit facility program. According to the fund, Ghana's economic growth in 2024 and the first quarter of 2025 exceeded expectations, boosted by activity in the mining, agriculture, IT, and construction sectors. Simultaneously, the country increased its international reserves, surpassing the target values set within the program.