The Bank of Ghana has once again sharply lowered its key interest rate.
The Bank of Ghana has lowered its key interest rate for the third consecutive time, this time by 350 basis points—exceeding analysts' expectations. The central bank also indicated that further significant rate cuts may be possible in the future.
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The Bank of Ghana (BoG) on Wednesday lowered its key interest rate by 350 basis points, bringing it down to 18.00%. This move continues the central bank’s aggressive policy of monetary easing.
This marks the third consecutive rate cut by the central bank. At the previous Monetary Policy Committee (MPC) meeting in September, a similar decision was made to reduce the rate by 350 basis points.
The reduction was more significant than analysts had anticipated. Economists surveyed by Reuters had predicted a decrease of only 250 basis points.
In its policy statement, the central bank expressed optimism, highlighting the possibility of further substantial rate cuts in the future. This positive outlook has fueled expectations that the Bank of Ghana could lower the rate by at least another 500 basis points by 2026, surpassing the current market consensus.
The accompanying statement from the bank’s governor was described as having a farewell tone, although specific details about this aspect were not fully disclosed.