The Bank of Ghana (BoG) has reduced its key interest rate, known as the policy rate, by 1.5 percentage points to 14 percent. This decision was announced on March 18, 2026, during the 129th meeting of its Monetary Policy Committee (MPC) in Ghana.
The Governor of the BoG, Johnson P, Asiama, said the rate cut was possible because Ghana’s economy is improving and inflation is very low. Inflation dropped to 3.3 percent in February 2026, which is below the Bank’s target range of 6 to 10 percent.
He explained that even though there are concerns about rising tensions in the Middle East that could affect global oil prices, the country’s economic situation remains strong enough to support the reduction in interest rates. The Bank believes inflation will stay within its target range, although risks remain if oil prices rise further.
This new rate of 14 percent is the lowest Ghana has recorded since July 2021. In recent years, the rate had increased significantly, reaching as high as 30 percent in September 2023 before gradually declining.
The BoG noted that the economy is performing better than expected. Economic activity grew by 8.4 percent in January 2026, compared to 6 percent in 2025. The government’s budget deficit also improved, dropping to 1 percent of GDP in 2025, which is better than the planned 2.8 percent. In addition, the country recorded a primary surplus of 2.6 percent of GDP.
Ghana’s public debt has also reduced significantly, falling to 45.3 percent of GDP at the end of 2025, down from 61.8 percent in 2024. This was due to better fiscal management, debt restructuring and economic growth.
The banking sector is also showing improvement. Bank assets have grown strongly, and key indicators like profitability, liquidity, and efficiency have all improved. Loans to businesses and individuals are increasing, and the ratio of non-performing loans dropped from 22.6 percent to 18.7 percent.
On the external side, Ghana recorded a trade surplus of 3.7 billion US dollars in the first two months of 2026, up from 2.1 billion dollars in the same period in 2025. The country’s foreign reserves also increased to 14.8 billion US dollars, enough to cover about 5.8 months of imports.
According to the Governor, lowering the policy rate should make borrowing cheaper for businesses and households. This is expected to boost lending, support private sector growth, and help the economy continue expanding.
However, the BoG warned that global uncertainties, especially due to tensions in the Middle East, could still affect the economy. The Bank said it is ready to take further action if needed to keep inflation stable.