Monetary Policy Committee of the Central Bank, by majority decision, has voted to lower the Monetary Policy Rate by 350 basis points to 18.0 in view of improved macroeconomic conditions contained in the report by the Monetary Policy Committee (MPC), 127th meeting from November 24 – 26, 2025, to evaluate recent economic developments and assess risks to the outlook for inflation and growth.
At the news conference held on 26 November 2025 to communicate policy decision, of the MPC, The Governor, Dr. Johnson Asiama submitted that the “overall macroeconomic conditions have broadly improved”, and given the anticipated significant decline in inflation by the end of the year, the tight monetary policy stance, the significant build-up of reserves which is providing anchor for exchange rate stability, the Bank projects a continued stable inflation profile around the target and well into the first half of 2026.
He said, “this is against the backdrop that current risks in the outlook to shift the path of inflation away from target have moderated significantly. Hence, the prevailing high real interest rates provides some scope to ease policy to further boost the growth recovery efforts”.
Given these considerations, the Committee, by a majority vote, decided to lower the Monetary Policy Rate by a further 350 basis points to 18.0 percent with the Committee promising to continue to monitor developments and take the appropriate policy decisions to ensure sound and stable macroeconomic conditions.
On the issue of external sector conditions remaining favourable, the Governor, Dr. Asiama, said the current account improved significantly in the first nine months of 2025 to a surplus of US$3.8 billion compared to US$553.6 million for the same period in 2024.
“The trade surplus increased to US$7.5 billion on the back of a surge in gold and cocoa export earnings. Private inward transfers remained high at U$6.0 billion at the end of the third quarter. The current account surplus, together with favourable balances in the capital and financial accounts, translated into an overall balance of payment surplus of US$1.8 billion and supported an accumulation of reserve assets to US$11.4 billion in October 2025, equivalent to 4.8 months of import cover”.
According to the Governor reserves are projected to increase further by year end-the reserve accumulation efforts have helped provide cushion for the currency, with the cedi strengthening against the major trading currencies. “In the year 3 to 21st November 2025, the cedi recorded an appreciation of 32.2 percent against the US dollar”.
