KEY POINTS
- The Ghana monetary policy rate drop makes it cheaper to borrow money.
- Inflation drops to 8 percent, which makes people more confident in the economy.
- A lower rate is expected to encourage lending and investment.
Dr. Cassiel Ato Forson, the Minister of Finance, has said that the Bank of Ghana’s recent drop in the monetary policy rate is a big step toward the country’s economic recovery. The central bank lowered the policy rate to 18 percent, the lowest level since March 2022. Authorities took this step because inflation was falling and the economy was stabilizing.
Dr. Forson stated on Wednesday that the drop is a 350 basis point drop from the 21.5percent level in August 2025 and a big drop from the 27 percent rate in November 2024. He said the choice aims to lower borrowing costs for people and businesses, ease access to credit, and boost investment across the economy.
Forson said, “Lower borrowing costs mean that businesses and people have more room to grow, invest, and create jobs.” He called the decision a show of renewed faith in Ghana’s economic future. Inflation, which was in the double digits a few months ago, is currently around 8 percent as of October. This has made the environment better for long-term growth.
Policy changes are likely to lead to more lending and growth in the private sector
Economists argue that the drop in Ghana’s monetary policy rate will probably help the private sector grow, boost production, and make the economy more active. Easier access to credit allows businesses to grow, families to spend and invest, and creates more job opportunities.
Dr. Forson said that the relaxing of the policy was a “clear sign of recovery momentum” and that he was hopeful that the economy will keep going higher. Analysts think that this change will help Ghana grow faster, bring in more investment, and make the economy more stable.
The finance minister said at the end, “The recovery is clearly getting stronger, and it can only get better.” This showed that the administration is committed to continuing economic reforms and creating an atmosphere that is good for growth.
