Bank of Ghana Cuts Policy Rate to 21.5% to Boost Economic Recovery

The Bank of Ghana has reduced its policy rate to 21.5% in efforts to stimulate credit growth and support economic recovery. This marks the second major rate cut in 2025, with a 350 basis point reduction.

Governor Bank Johnson Asiama announced the decision following the 126th Monetary Policy Committee meeting, citing easing inflation and fiscal consolidation as key factors. Despite a recent decline in the Ghanaian cedi, inflation is projected to enter the target band of 6-10% by year-end.

The central bank's proactive stance aims to bolster confidence in monetary policy effectiveness amidst global economic challenges.