The Bank of Ghana has reduced its policy rate by 150 basis points to 14 percent, marking the second consecutive cut this year as authorities seek to support economic growth.
The latest decision follows an earlier reduction in January, when the rate was lowered from 18 percent to 15.5 percent, signalling a gradual easing of monetary policy.
Announcing the decision at a press conference on March 18, 2026, Governor Johnson Asiama said the move reflects a balance between stimulating the economy and maintaining price stability.
Dr. Asiama noted that rising geopolitical tensions, particularly in the Middle East, remain a key concern for policymakers.
“Rising geopolitical tensions in the Middle East have deepened uncertainty in the external sector,” he said, adding that the central bank’s forecasts indicate inflation will remain within the medium-term target despite potential risks.
He cautioned that higher crude oil prices and global instability could still pose threats to Ghana’s inflation outlook.
Supporting lending and investment
The Governor explained that the committee’s decision was also influenced by domestic economic conditions, including subdued credit growth and improving banking sector health.
“The Monetary Policy Committee has considered the current economic conditions… and decided that a reduction in the policy rate is appropriate to stimulate lending and investment.” - Governor Johnson Asiama
He added that the rate cut is expected to ease borrowing costs for businesses and households, thereby promoting economic activity.
“Our goal remains to ensure a stable financial system while supporting households and businesses to access affordable credit.” - Governor Johnson Asiama
Dr. Asiama further highlighted the resilience of Ghana’s financial sector, noting improvements in key indicators.
According to him, total banking sector assets have grown, while non-performing loans have declined, reflecting stronger balance sheets among financial institutions.
The latest rate cut underscores the central bank’s confidence in the economy’s trajectory, even as it navigates both domestic and global challenges.
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