The Bank of Ghana (BoG) has, by a majority decision, reduced the Monetary Policy Rate (MPR) from 18% to 15.5%, marking its first policy decision of 2026.
Dr Johnson Asiama, Governor of the Bank of Ghana, announced the decision during a press briefing at Bank Square on Wednesday, January 28, following the 128th Monetary Policy Committee (MPC) meeting.
The cut follows a significant 350-basis-point reduction in November 2025, when the MPR was lowered from 21.5% to 18% in response to easing inflationary pressures.
“The latest forecast and six-month-ahead survey-based inflation expectations indicate that headline inflation is broadly expected to be within the medium-term target, barring potential spillover risks from upward adjustments in utility prices and commodity market volatility. GDP growth is expected to remain strong in 2026, with the output gap narrowing. While this may introduce moderate demand-side pressures, the Committee judged that current monetary conditions remain tight relative to prevailing inflation dynamics”, he said.
With the latest reduction of 250 basis points, the central bank is signalling continued support for growth while maintaining a cautious approach to price stability.
“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.”
“Based on the foregoing considerations, the Committee, by a majority decision, voted to lower the Monetary Policy Rate by 250 basis points to 15.50 per cent. The Committee will continue to monitor developments closely and take appropriate policy actions to ensure that the gains from macroeconomic stability are translated into sustainable growth,” Governor Dr Asiama said.
The governor explained that the decision reflects anticipated improvements in key macroeconomic indicators both domestically and globally.
He emphasised that the Bank of Ghana remains committed to a measured and forward-looking policy stance to balance economic growth with inflation management.
