The Bank of Ghana has reduced its Monetary Policy Rate by 150 basis points to 14 percent, citing improved domestic macroeconomic conditions while warning of growing global uncertainties that could threaten the inflation outlook.
Announcing the decision at the end of the 129th Monetary Policy Committee (MPC) meeting, Governor Dr. Johnson Pandit Asiama said the move reflects the balance between strong economic recovery and emerging external risks.
“The MPC decided to reduce the monetary policy rate by 150 basis points to 14%,” the Governor stated.
The decision comes on the back of sustained disinflation, with headline inflation declining to 3.3 percent in February 2026, marking a continued downward trend driven by easing food and non-food prices as well as stable inflation expectations.
Dr. Asiama explained that the easing of the policy rate was supported by favourable domestic macroeconomic conditions and high real interest rates, which created room for further policy relaxation to support growth.
However, the Governor cautioned that rising geopolitical tensions in the Middle East present significant risks to the outlook, particularly through potential increases in global oil prices and supply chain disruptions.
“The Committee will continue to closely monitor developments, especially in the Middle East, and its potential implications on the inflation outlook,” he said.
According to the Bank, while inflation is expected to remain within the medium-term target band, upside risks persist, particularly from external shocks that could reverse recent gains.
Dr. Asiama stressed that the Bank stands ready to act if conditions change. “The Committee stands ready to take appropriate policy actions as needed to safeguard price stability,” he added.
The latest rate cut signals the Bank’s confidence in the strength of Ghana’s economic recovery, even as it maintains a cautious stance in the face of global uncertainty.
