The Monetary Policy Committee of The Central Bank by a majority decision voted to lower the Monetary Policy Rate by 350 basis points to 21.5%t as the Committee promised to continue to monitor macroeconomic developments and take the appropriate policy decision as and when necessary to reinforce the disinflation process.
Announcing the decision of the Committee at news conference in Accra, the Governor, Dr. John Asiama revealed that
“Interest Rates are declining on the money market in response to the recent cut in the monetary policy rate” whereas “yields on the money market instruments have declined significantly and the average lending rates are gradually easing, which should lower the cost of credit in the near-term”.
He mentioned that the interest equivalent of the 91-Day Treasury Bill instrument eased from 13.4 percent at the end of July 2025 to 10.3 percent at the end of August 2025.
The average lending rate over the same period went down from 26.6 percent to 24.2 percent, “fiscal policy implementation in the year to July 2025 reflected strong consolidation efforts underpinned by tight expenditure controls, although revenues fell short of target. Consequently, the overall fiscal deficit on commitment basis was 1.1 percent of GDP, outperforming the target deficit of 2.1 percent of GDP”
Also, the fiscal anchor, that is, the primary balance on commitment basis, recorded a surplus of 1.0 percent of GDP, reflecting a better outtum than the targeted surplus of 0 5 percent of GOP.
On the issue of deficit, Dr. Asiama said, it is largely financed from domestic sources and at end-July 2025, “the total public debt stood at 44.9 percent of GDP down from 61 8 percent of GOP at end December 2024”.
The banking sector recorded strong performance over the first eight months, with continued asset growth and improved profitability, asset quality, and efficiency indicators.
The industry’s Capital Adequacy Ratio (CAR), without regulatory reliefs, increased to 17.7 percent in August 2025, from 10 2 percent in August 2024.
The industry’s Non-performing Loan (NPL) ratio improved to 20.8 percent compared to 24.8 percent last year, due to growth in bank credit and contraction in NPL stock.
This notwithstanding, elevated credit risk remains a major concern in the outlook, adherence to the recapitalzation plans and full implementation of the Bank’s regulatory guidelines to lower. NPLs will further enhance resilience of the banking sector.
According to the Bank, the external sector strengthened in the first eight months of 2025 with a significant trade surplus of US$6.2 bilion, compared to US$2 .1 billion recorded during the same period in 2024.
This, the Governor stressed was driven by a sharp increase in exports earnings, mainly gold and cocoa, which far outpaced import growth.
The reserve position remained strong with Gross International Reserves at US$10 .7 billion (4.5 months of import cover) as at end August 2025. compared with USS$8.98 bullion (4. 0 months of import cover) at end-December 2024.
“In the outlook, the external sector is projected to broadly remain resilient, anchored on favourable commodity prices and improvement in remittance inflows.” the Governor added.
