ACCRA, Nov. 26 (Xinhua) -- Ghana's central bank on Wednesday announced a further 350-basis-point cut in the benchmark lending rate to 18 percent, down from 21.5 percent, citing a positive inflation outlook and the need to support economic growth.
During a regular Monetary Policy Committee (MPC) press briefing, Bank of Ghana Governor Johnson Asiama said that the committee expected inflation to fall further by the end of the year.
Given the anticipated significant decline in inflation by the end of the year, the tight monetary policy stance, and the significant build-up of reserves, which provides an anchor for exchange rate stability, Asiama said the inflation is estimated to remain around the target band of between 6 percent and 10 percent well into the first half of 2026.
Moreover, he said the high interest rates by commercial banks give the MPC some scope to ease policy to boost the growth recovery efforts.
The governor pledged that the committee would continue to monitor developments and take the appropriate policy decisions to ensure sound and stable macroeconomic conditions.
The International Monetary Fund has completed a fifth review of Ghana's three-year Extended Credit Facility-backed reforms, observing that the country has made notable progress in restoring macroeconomic stability as inflation declined to 8 percent in October, from 23.5 percent in January.
