Bank of Ghana Considers Further Rate Cut as Inflation Falls Faster Than Expected

Ghana’s central bank is assessing whether to lower interest rates again after inflation eased more quickly than anticipated, according to a report from Reuters. The outlook marks a potential shift toward a more accommodative policy stance as price pressures continue to decline.

Governor Johnson Asiama said inflation is expected to settle between four and six percent by the end of the year and to remain within the bank’s medium term target band of eight percent plus or minus two percentage points in 2026. He noted that although real borrowing costs remain high, the improving economic environment provides space for a gradual easing cycle, as reported by Reuters.

The bank reduced its benchmark rate by three hundred and fifty basis points to twenty one point five percent in September after recording steady disinflation, Reuters added.

Analysts say the broader economic picture is strengthening, with economic growth reaching six point three percent in the first half of 2025 and international reserves rising to their highest levels in several years. This progress suggests the timing of any rate adjustments will be critical to maintaining stability while supporting momentum, according to Reuters.

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