The Monetary Policy Committee of the Central Bank, by majority decision, has voted to lower the Monetary Policy Rate by 300 basis points to 25.0% for July, 2025 with a promise to bring it the rate further down should the disinflation trend continue, as the Committee remains committed to the price stability mandate, while creating conditions for inclusive and sustainable growth.
According to the report, macroeconomic conditions have significantly improved, inflation expectations are broadly anchored, external buffers have strengthened, and confidence in the economy is returning.
Announcing the decision at the news conference at the bank Square in Accra on July 30, 2025, the Governor, Dr. Johnson Asiama said, “the July forecast also shows that headline inflation is expected to decline further in the third quarter of 2025 and trend within the medium-term target of 8±2 percent by the end of 2025, earlier than initial projections”.
But he was quick to mentioned, upside risks to the inflation outlook, which include potential supply chain challenges emanating from the global trade tensions, and upward adjustment in utility tariffs- “this notwithstanding, the impact of these risks on inflation is expected to be offset by appropriately tight monetary policy stance and continued fiscal consolidation”.
In the banking sector, the Governor stressed that the Financial Soundness Indicators reflected continued asset growth, improved solvency, liquidity, profitability, and efficiency in the first half of the year, and the non-performing loan ratio eased in June 2025 on account of lower growth of non-performing loan stock relative to credit. “Continued improvement in the economic conditions, ongoing recapitalization efforts from capital injections and profits, coupled with the implementation of strict credit underwriting standards, should enhance resilience in the banking sector”.
The external sector has also improved markedly, according to him, with a record current account surplus of US$3.4 billion in the first half of 2025, supported mainly by higher prices and increased production volumes of gold and cocoa. The current account surplus, together with the outturns in the capital and financial accounts, culminated in an overall balance of payment surplus of US$2.2 billion, significantly higher than the US$588.5 million recorded in June 2024.
“On this score, Gross International Reserves stood at US$11.1 billion at End-June 2025, equivalent to 4.8 months of import of goods and services, compared to US$8.9 billion (4.0 months of import cover) as at End-December 2024. The external sector outlook is positive, anchored on favourable commodity prices and improved remittance inflows, despite the resumption of external debt service. On the back of the strong external sector performance and increased reserve accumulation, the cedi has further strengthened against the major trading currencies”, he noted.
“In the year to 25th July, 2025, the cedi appreciated by 40.7 percent against the US dollar, 31.2 percent against the British pound, and 24.2 percent against the eur
