The Bank of Ghana has cut its policy rate by 350 basis points to 21.5%, marking the third rate cut in 2025. The decision reflects the central bank’s confidence in the country’s economic progress, particularly in controlling inflation and sustaining growth.
According to Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana, the economy has made significant strides in recent months. Inflation has declined for the ninth consecutive month, reaching 9.4% in September 2025, with food inflation dropping to 11% and non-food inflation easing to 8.2%.
The economy has also experienced robust growth, with a 6.3% expansion in Q2 2025, driven largely by services and agriculture.
The banking sector has maintained strong performance and resilience, with a Capital Adequacy Ratio of 17.7% and improved Non-Performing Loans (NPLs) at 20.8%.
The Bank of Ghana has introduced new directives to strengthen prudential oversight and risk management, including the Bancassurance Directive and Guidelines on Credit Concentration Risk Management.
The Bank of Ghana expects further improvement in the economy, with inflation projected to remain within the medium-term target band of 8 ± 2% by the end of the fourth quarter.
The central bank will continue to monitor potential risks, including global oil price volatility and possible tariff adjustments, and stands ready to take decisive action to safeguard stability.
The Bank of Ghana will commence foreign exchange intermediation under the Domestic Gold Purchase Programme, with plans to sell up to US$1.15 billion for the month. The sales will be conducted on a spot basis through twice-weekly, price-competitive auctions open to all licensed banks.
