Ghana’s central bank cut its main interest rate by 350 basis points to 18.0% on Wednesday, citing an improved economic outlook and expectations for further declines in consumer inflation.
Economists polled by Reuters had forecast a 250 basis points cut after a record 350 basis point reduction to 21.5% at the previous monetary policy committee meeting in September.
The bank has now lowered its main interest rate by a cumulative 1,000 basis points in 2025, following cuts of 300 basis points in July and 350 basis points in September.
Policymakers said the aggressive easing was aimed at supporting economic recovery and expansion, while safeguarding price stability.
“In taking the policy decision, the view of the monetary policy committee was that overall, macroeconomic conditions have broadly improved, given the anticipated significant decline in inflation,” Bank of Ghana Governor Johnson Asiama told a news conference.
Ghana’s consumer inflation has fallen sharply from a record 54% in January 2023 to 8% year-on-year in October.