Ghana’s central bank on Wednesday lowered its benchmark policy rate (GHCBIR=ECI) by 300 basis points to 25%, exceeding expectations, as consumer inflation showed signs of continued decline in the gold and cocoa-producing economy.
The Bank of Ghana had been widely anticipated to reduce the rate by 200 basis points to 26%, according to a Reuters poll of 10 analysts.
“The committee noted that macroeconomic conditions have significantly improved. Inflation expectations are broadly anchored… and confidence in the economy is returning,” governor Johnson Asiama, told a news conference.
Asiama added that inflation risks are expected to be mitigated through appropriately managed monetary policy frameworks and ongoing fiscal consolidation efforts.
“Given these considerations, the MPC, by a majority decision, voted to lower the monetary policy rate by 300 basis points to 25%,” he said.
Last month, consumer inflation dropped to 13.7% from 18.4% in May, reaching the lowest level since December 2021.