Ghana continues to maintain the third-highest monetary policy rate in Sub-Saharan Africa, despite cumulative rate reductions totaling 7.5 percentage points so far in 2025.
According to the World Bank’s Africa’s Pulse Report released in October 2025, Ghana’s benchmark interest rate stands at 21.5%, behind only Nigeria (27%) and Malawi (26%). The report noted that this comes even as the Bank of Ghana adopts a cautious approach aimed at consolidating disinflation gains and preserving macroeconomic stability.
In September, the central bank’s Monetary Policy Committee (MPC) announced a 350-basis-point cut, bringing the policy rate to its lowest level since October 2022. This decision reflects growing confidence in Ghana’s economic outlook, supported by declining inflation, stronger external reserves, and sustained growth across key sectors.
Despite this progress, the World Bank observed that Ghana’s monetary conditions remain relatively tight compared to its regional peers. Countries such as Kenya, Mozambique, Lesotho, and South Africa have advanced further in their rate-cutting cycles, while others like Rwanda and Uganda have maintained stable policy rates in recent months.
The report further indicated that while the Bank of Ghana’s prudent stance underpins long-term stability and anchors inflation expectations, a gradual easing of monetary policy could help reduce borrowing costs, spur private sector investment, and enhance trade competitiveness.
However, the World Bank cautioned that external risks — including global commodity price fluctuations and uncertainty in advanced economies — could slow monetary normalization across Africa.
It added that countries such as Ghana, which are showing improved inflation trends and credible policy frameworks, have room to ease monetary conditions without jeopardizing macroeconomic stability.
Although recent policy cuts signal a shift toward easing, the Bank of Ghana is expected to proceed cautiously as it monitors global developments and works to reinforce Ghana’s economic recovery.
Source:Africa Publicity
