The Monetary Policy Committee (MPC) of the Bank of Ghana has reduced the policy rate by 150 basis points to 14 percent, marking the second consecutive rate cut in 2026.
Earlier in January, the committee lowered the policy rate from 18 percent to 15.5 percent as part of efforts to support economic recovery and stabilise prices.
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Announcing the decision at a press conference on March 18, 2026, Governor Johnson Asiama said the move was aimed at supporting economic growth while keeping inflationary pressures under control.
He noted that the committee also considered global developments, particularly rising geopolitical tensions in the Middle East, which could pose risks to Ghana’s external sector.
Rising geopolitical tensions in the Middle East have deepened uncertainty in the external sector. The Bank’s latest forecast suggests that headline inflation will remain within the medium-term target band. However, upside risks remain, including the likely pass-through of higher crude oil prices and escalating geopolitical tensions,” he said.
Dr. Asiama explained that the committee carefully assessed both domestic economic conditions and external risks before deciding to further ease monetary policy.
According to him, the MPC took into account subdued credit growth, improving banking sector stability, and declining non-performing loans in arriving at the decision.
The Monetary Policy Committee has considered the current economic conditions, including subdued credit growth and declining non-performing loans, and decided that a reduction in the policy rate is appropriate to stimulate lending and investment,” he stated.
He added that the policy move is expected to reduce borrowing costs for businesses and households, thereby encouraging lending and supporting broader economic activity.
The Governor further indicated that Ghana’s banking sector remains resilient and well-capitalised, despite slower credit expansion.
He noted that total assets in the banking sector have continued to grow while the stock of non-performing loans has declined, signalling improved stability in the financial system.
The central bank expects the latest rate cut to strengthen financial conditions and promote sustainable economic growth while maintaining price stability.
