The Bank of Ghana has announced a significant reduction in the Monetary Policy Rate, cutting the key lending rate by 350 basis points to 18 per cent. The decision, made by the Monetary Policy Committee (MPC) at its 127th regular meeting, reflects the central bank’s growing confidence in the nation’s economic stabilization. Governor Dr. Johnson Asiama attributed the rate cut to continued progress in disinflation, a more stable foreign exchange market, and improved short-term inflation expectations.
Governor Asiama noted that inflation has continued to ease faster than anticipated, supported by a more stable exchange rate and lower underlying pressures. The Committee saw room to provide additional support to the economy while maintaining a prudent stance. The reduction aligns with the central bank’s commitment to guide the economy toward a lower and more sustainable interest rate environment, without compromising the hard-won gains in stability. The move aims to lower the cost of borrowing and boost economic growth.
The rate cut is expected to have a positive impact on the economy, making credit more accessible and affordable for businesses and individuals. The central bank’s decision demonstrates its commitment to supporting economic growth while maintaining stability. The move has been welcomed by economic stakeholders, who expect it to stimulate economic activity and drive growth in the country.
Ruth Abla ADJORLOLO
