Bank of Ghana to Aggressively Cut Policy Rate This Year

Bank of Ghana is expected to keep slashing its policy rate after Fitch Solutions projected a 14% rate by the end of 2026, the firm said in its November 2025 Sub‑Saharan Africa Update.

The UK‑based analyst notes that Ghana’s inflation has already slipped into single‑digit territory, prompting the central bank to cut its benchmark by a cumulative 1,000 basis points since the start of the year.

At the November Monetary Policy Committee meeting, the BoG lowered the rate by another 350 basis points to 18.00%, citing improved macro‑economic conditions and a sharp fall in inflation.

“With inflation in single digits, we expect the BoG to keep cutting aggressively through the coming months, further boosting private credit, corporate capex, and domestic demand,” Fitch Solutions stated.

BoG officials added that “overall macroeconomic conditions have broadly improved, supported by a significant build‑up of reserves which anchors exchange‑rate stability,” and they project a stable inflation profile around the target well into the first half of 2026.

While current risks of inflation deviating from target have moderated, analysts warn that any resurgence in global commodity prices or fiscal pressures could reignite inflationary pressures, making the BoG’s forward guidance crucial.

The next policy review is slated for early 2027, and markets will watch closely for further easing signals that could reshape borrowing costs for Ghanaian businesses and households.

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