Ghana Interest Rate

The Bank of Ghana slashed its benchmark monetary policy rate by 200 points to 27% during a regular meeting on September 27, 2024. This marks the first reduction in eight months and the steepest since March 2018, following a slowdown in inflation and expectations for the disinflation process to continue. Ghana's annual consumer inflation eased for the 5th straight month in August 2024, falling to a near 2-1/2-year low of 20.4% from 20.9% in July, though still well above the central bank's medium-term target band of 6% to 10%. Inflation is expected to continue to ease toward the central bank’s year-end goal of 13% to 17% and steadily move toward the medium-term target by the end of 2025. Regarding economic growth, Governor Addison noted that the “economy is performing well” and that macroeconomic conditions have significantly improved, creating space for a substantial rate cut.