ACCRA, Jan. 28 (Xinhua) -- Ghana's central bank on Wednesday announced a further 250-basis-point cut in its benchmark lending rate to 15.5 percent to boost growth after inflation has been broadly tamed.
Addressing the media during a regular Monetary Policy Committee (MPC) press conference, Bank of Ghana Governor Johnson Asiama said that, despite the reduction, monetary policy conditions remain tight, considering the prevailing inflation dynamics.
According to Asiama, inflation has declined faster than anticipated, with expectations well anchored amid significantly improved macroeconomic conditions, supported by a tight monetary policy stance, fiscal consolidation, and a significant build-up of reserves.
The central bank, according to the governor, expects headline inflation to remain broadly within the medium-term target range of 6 to 8 percent, "barring potential spillover risks from upward adjustments in utility prices and commodity market volatility."
"With stability largely achieved, the focus of policy is gradually shifting toward consolidating these gains and supporting stronger real sector recovery, job creation, and improved financial intermediation," he added.
Asiama allayed fears that the shift toward growth and strong growth expectations for 2026 may introduce demand-side pressures.
"The MPC judged that current monetary conditions remain tight relative to prevailing inflation dynamics. Sustaining Ghana's macroeconomic gains will hinge on disciplined fiscal policy, strong policy coordination, and targeted agricultural interventions to contain food inflation, while remaining vigilant to heightened geopolitical tensions," he said.
The International Monetary Fund released an additional 385 million U.S. dollars to the West African country in December 2025, following favorable reviews of the implementation of the reform program.
