The Bank of Ghana has announced a significant reduction in its monetary policy rate alongside a suite of new regulatory directives aimed at strengthening the nation’s financial sector. Speaking at a post-Monetary Policy Committee meeting with bank executives on December 16, 2025, Governor Dr. Johnson P. Asiama confirmed a policy rate cut of 350 basis points, citing a consistent downward trend in inflation and robust economic growth as primary drivers for the decision.
During the session, which followed the conclusion of the 127th MPC meetings, Dr. Asiama outlined a comprehensive roadmap for enhancing banking sector resilience. The central bank plans to issue new mandates regarding stress-testing, recovery planning, and risk management to ensure institutions can withstand potential economic shocks.
Furthermore, the Bank of Ghana will implement a Revised Risk-Based Supervisory Framework, shifting its focus toward a more holistic evaluation of business risk, financial resilience, risk governance, and operational standards.
Governor Asiama emphasized that these reforms are part of a broader vision to modernize the Ghanaian banking sector and align it with international best practices. He noted that the central bank intends to strengthen its collaboration with other financial regulators and industry bodies to maintain systemic stability. According to the Governor, the current strategy is designed to foster a competitive and inclusive financial environment capable of supporting the country’s long-term growth agenda and providing a stable foundation for the Ghanaian people.
Ruth Abla ADJORLOLO
