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The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has cut the policy rate by 300 basis points, bringing it down from 28% to 25%, in a bold move to support economic growth amid easing inflationary pressures.
Announcing the decision at a press briefing on Wednesday, July 30, 2025, BoG Governor and MPC Chairman Dr. Johnson Asiama revealed that the majority of the 7-member committee voted in favor of the rate cut.
“The MPC, by a majority decision, voted to lower the monetary policy rate by 300 basis points to 25.0%,” Dr. Asiama said. “Looking ahead, the Committee will continue to assess incoming data and likely reduce the policy rate further should the disinflation trend continue.”
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The reduction marks the largest single cut in recent years, signaling growing confidence in the ongoing disinflation process and a pivot towards policies that can stimulate credit growth and economic activity.
Dr. Asiama emphasized that the central bank remains firmly committed to its price stability mandate while also ensuring that monetary policy supports inclusive and sustainable growth.
He acknowledged that while inflation is moderating, there are still upside risks to the outlook, including:
- Global supply chain disruptions linked to rising trade tensions
- Expected hikes in utility tariffs
“These notwithstanding, the impact of these risks on inflation is expected to be offset by an appropriately tight monetary policy stance and continued fiscal consolidation,” the governor added.
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