Bank of Ghana Expected to Slash Interest Rates as Inflation Drops Sharply
The Bank of Ghana may cut its policy rate by 300 basis points to 25% at its July meeting, according to IC Research projections. The dramatic reduction reflects Ghana’s inflation rate plummeting to 13.7% in June 2025.
IC Research analysts maintain a dovish outlook for the upcoming Monetary Policy Committee (MPC) session. The research firm increased its expected rate cut forecast following the significant inflation decline. Ghana’s central bank uses the policy rate as its primary tool to control inflation and economic growth.
The projected 3 percentage point reduction would mark one of the largest single cuts in recent years. Current economic conditions appear to support aggressive monetary easing as price pressures ease across the West African nation.
Inflation’s drop to 13.7% represents a substantial improvement from previous months, giving the MPC room to stimulate economic activity. Lower interest rates typically encourage borrowing and investment while reducing the cost of credit for businesses and consumers.
The Bank of Ghana’s MPC meets regularly to assess economic conditions and adjust monetary policy accordingly. Rate cuts generally signal confidence in declining inflation trends and efforts to boost economic growth.
IC Research’s forecast suggests Ghana’s central bank will prioritize economic stimulus over inflation concerns. The July meeting will reveal whether policymakers embrace such aggressive easing measures to support the country’s economic recovery efforts.
