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Ghana Cuts Interest Rates by 300 Basis Points—A Turning Point for the Economy

  • Writer: Derry Thornalley
    Derry Thornalley
  • Aug 3
  • 2 min read

After two years of battling inflation, debt pressures, and tight liquidity, Ghana has just delivered a bold and unexpected signal: it’s time to ease.


In a move that surprised markets, the Bank of Ghana announced a 300 basis point cut to its benchmark interest rate, bringing it down from 28% to 25%. This is the largest single rate cut in over a decade, and it reflects a growing sense of confidence that Ghana’s worst inflationary days may be behind it.

And make no mistake: this wasn’t just about numbers. It was about momentum—and perhaps even renewed optimism.


From Crisis to Stabilisation

Just a year ago, Ghana was caught in a financial storm. Inflation had soared past 50%, debt restructuring talks were still ongoing, and investors were pulling back.


But a lot has changed.


Inflation has now dropped to 13.7%, its lowest point since 2021. Fiscal performance in the first half of 2025 was better than expected. And the country is starting to see green shoots—thanks in part to disciplined public spending, currency stabilisation, and restored relationships with multilateral partners like the IMF.

This rate cut is the Bank of Ghana’s way of saying: We’ve turned a corner.


Celebrating Ghanaian People In the Streets

Why This Matters

Interest rate cuts send powerful signals. They tell businesses it’s time to borrow again. They give consumers a reason to spend. And they often mark the start of a new cycle—one that moves from survival to recovery.


For Ghana:

  • It’s a boost for domestic businesses struggling with high financing costs.

  • It’s a lifeline for consumers facing elevated prices.

  • It may trigger increased lending activity from banks.

  • And it sets the tone for more accommodative monetary policy going forward.


What makes this cut even more meaningful is that it didn’t come from external pressure. It came from macroeconomic progress made at home.


A Word of Caution

The move is bold—but not without risk. Inflation may have eased, but food prices remain volatile, and global oil prices are creeping upward again. The central bank will need to remain agile.


That said, the tone has shifted. Ghana isn’t out of the woods, but it’s stepping into a clearing—with more control, more options, and more investor interest than it’s had in years.


This decision marks more than a monetary policy adjustment. It’s a declaration of confidence. A belief that Ghana is ready to transition from crisis management to growth planning.


And if the trend holds, we may be witnessing the start of Ghana’s economic comeback story—one rate cut at a time.

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