Ghana Maintains Africa’s Third-Highest Policy Rate Even After Multiple Reductions
Ghana holds the position of having the third-highest monetary policy rate in Sub-Saharan Africa. Despite cutting its rate by a cumulative 7.5 percentage points since early 2025, the country’s benchmark rate remains at 21.5%. Only Nigeria and Malawi have higher rates at 27% and 26%, respectively.
Recent Developments in Ghana’s Monetary Policy
This information comes from the World Bank’s “Africa’s Pulse Report” published in October 2025. The Bank of Ghana (BoG) has exercised caution in its monetary policy, aiming to consolidate disinflation gains and uphold macroeconomic stability.
Latest Rate Cut
In September 2025, the BoG reduced the policy rate by 350 basis points, marking the lowest rate since October 2022. This adjustment reflects a burgeoning confidence in Ghana’s economic outlook, bolstered by:
- Declining inflation
- Strengthening external reserves
- Steady growth in key sectors
Comparative Analysis with Regional Peers
Despite the rate cuts, the World Bank notes that Ghana’s monetary conditions are still comparatively tight. Other regional countries, including Kenya, Mozambique, Lesotho, and South Africa, are advancing further into their monetary easing cycles. In contrast, Rwanda and Uganda have held their rates steady for several months.
Potential for Future Easing
The BoG’s cautious approach is seen as vital for anchoring inflation expectations and ensuring long-term stability. However, gradual easing of monetary conditions could:
- Lower lending costs
- Encourage private sector investment
- Enhance Ghana’s competitiveness in trade
The World Bank cautions that global challenges, such as commodity price fluctuations and uncertainties in advanced markets, could impede monetary normalization across Africa. Nonetheless, nations like Ghana, which are witnessing improved inflation dynamics, now have the latitude to ease their monetary policies without jeopardizing macroeconomic stability.
Outlook for Ghana’s Monetary Policy
As Ghana navigates this delicate balance between caution and growth, analysts anticipate that the BoG will continue its gradual approach. This strategy will likely be informed by both domestic economic indicators and global economic trends before any further policy changes are implemented.
