The Monetary Policy Committee (MPC) of the Bank of Ghana has cut the policy rate by 350 basis points, bringing it down to 21.5 percent from 25 percent.
Governor of the Bank of Ghana, Dr. Johnson Asiama, announced the decision on Wednesday, September 17, 2025, following the Committee’s 126th meeting.
He explained that the decision reflects the MPC’s outlook of continued disinflation in the near term.
“The Committee’s assessment is that inflation will continue to ease. In the medium term, headline inflation is projected to fall within the target band of 8 percent, plus or minus 2, by the end of the fourth quarter,” Dr. Asiama stated.
He added: “Given these considerations, the Committee, by a majority decision, voted to lower the Monetary Policy Rate to 21.5 percent. We will continue to monitor macroeconomic developments and take the necessary steps to reinforce the disinflation process.”
Dr. Asiama, however, cautioned that potential upward adjustments in utility tariffs could introduce price pressures in the medium term. For instance, the Electricity Company of Ghana (ECG) has requested a 225 percent increase in its Distribution Service Charge from the Public Utilities Regulatory Commission (PURC).
Cedi performance
Addressing the local currency, Dr. Asiama said the cedi remains among the strongest performing currencies in the world in 2025, attributing its resilience to prudent monetary policy, effective liquidity management, fiscal consolidation, and higher foreign exchange inflows.
“The Bank of Ghana is closely monitoring the performance of the cedi and implementing regulatory measures to sustain its stability,” he assured.
