Ghana’s Central Bank Cuts Rate to Four-Year Low of 15.50% as Inflation Eases
Central bank slashes benchmark by 250nps as inflation falls to 5.4%, bolstering hopes for fintech, agribusiness and diaspora real estate deals amid record exports. signals confidence in recovery.
Ghana’s central bank has cut its benchmark interest rate by 250 basis points to 15.50%, the lowest in four years, signaling confidence in a hard-won battle against inflation and paving the way for private-sector revival.
The Bank of Ghana has now reduced rates by a cumulative 12.5 percentage points since launching its easing cycle last July. Governor Johnson Asiama said the decision reflected “significantly improved” macroeconomic conditions, citing tight monetary policy, fiscal consolidation, and a reserves buildup.
Consumer inflation fell from a record 54.1% in December 2022 to 5.4% by year-end 2025, well below the bank’s 8% target band.
“This was supported by the tight monetary policy stance, fiscal consolidation and significant build up of reserves,” Asiama told reporters at the press briefing, forecasting inflation within target through mid-2026 alongside strong GDP growth.
Exports Provide Fiscal Space
The interest rate cut in Ghana comes as the West African country registered it strongest external performance in years. According to the Ghana Gold Board (GoldBod), the country closed 2025 with record export earnings of $31.1 billion, up sharply from US$19.1 billion in 2024.
Gold exports doubled to $20 billion, accounting for nearly two-thirds of total receipts and pushing the trade balance to a surplus of about $13.6 billion. Cocoa followed as the second-largest export earner, generating $3.8 billion, despite headwinds in global commodity markets.
The strength of exports has also bolstered Ghana’s external buffers. Gross international reserves climbed to a record $13.8 billion by end-2025, while the current account balance exceeded $9 billion, a dramatic improvement from just US$1.5 billion a year earlier.
“The resilience of gold and cocoa exports has provided Ghana with the fiscal space to consolidate gains and support broader economic recovery,” the Gold Board noted on an appraisal report on its website.
Relief for Private Sector
With inflation tamed and borrowing costs easing, Ghana’s private sector, long constrained by loans exceeding 30%, is primed for renewed expansion.
Real estate, already buoyed by Ghana’s outreach to the African diaspora, particularly in North America, could see renewed momentum as lower borrowing costs make property investment more attractive. Diaspora investors increasingly view Ghana as both a cultural homecoming and a strategic base for business, aligning with government initiatives like Beyond the Return.
Agribusiness, from cocoa to cashew, also looks to get more breathing room, as cheaper financing enables farmers and exporters to scale operations, invest in processing, and tap into AfCFTA’s expanding trade corridors.
Positioning for Regional Trade
The move comes as intra-African trade accelerates under AfCFTA, projected to reach 22% of the continent’s total trade volume in 2026, up from 15% in 2021. The World Bank estimates AfCFTA could add $450 billion to Africa’s income by 2035, while boosting global trade efficiency by $76 billion.
Ghana’s monetary easing forms part of efforts to position the country in capturing new opportunities in regional and global value chains, underpinned by record export earnings and strengthened reserves.
