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Bank of Ghana Cuts Rate to Boost Growth Amid Inflation Drop

8/1/2025

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Summary

Story summary

The Bank of Ghana reduced its policy rate from 28% to 25% on July 30, 2025, due to improved macroeconomic conditions and a decline in inflation to 13.7%.
The cedi strengthened by over 40% against the U.S. dollar in 2025, indicating enhanced external buffers and investor confidence.
Economists had mixed reactions, with some deeming the rate cut aggressive and insufficient to tackle high business credit costs.
The central bank's goal is to foster economic growth while ensuring price stability during ongoing fiscal consolidation.

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Story summary

The Bank of Ghana reduced its policy rate from 28% to 25% on July 30, 2025, due to improved macroeconomic conditions and a decline in inflation to 13.7%.
The cedi strengthened by over 40% against the U.S. dollar in 2025, indicating enhanced external buffers and investor confidence.
Economists had mixed reactions, with some deeming the rate cut aggressive and insufficient to tackle high business credit costs.
The central bank's goal is to foster economic growth while ensuring price stability during ongoing fiscal consolidation.