As the West African nation recovers from a severe economic crisis, Ghana’s central bank cut its benchmark interest rate by 3% on Wednesday as a result of easeling inflationary pressures.
The Bank of Ghana announced a benchmark rate reduction of 28% to 25%, the first rate reduction in more than a year, as the cedi currency’s value recovered against the dollar.
Johnson Pandit Asiama, the bank’s governor, said, “We continue to support our price stability commitment while establishing the conditions for sustainable growth.”
UPDATED: MPC Retains Interest Rate At 27.5%
In Ghana, the country’s main producer of cocoa and gold, inflation eased in June to 13.7 percent, the sixth monthly decline in a row.
Since the beginning of 2025, the cedi has increased by more than 40% against the US dollar, thanks to stronger external buffers, waning exports, and growing investor confidence.
The government has made progress in its economic reforms and debt restructuring since January when President John Mahama took the oath of office amid economic unrest, according to the International Monetary Fund earlier this month.
Food inflation decreased as well, but overall inflation remained above average in July, at 16.3%.
Despite the advancement, many regular Ghanaians are still in need of assistance as living expenses continue to rise.
The cost of making a pot of jollof rice, a West African staple of rice, vegetables, and meat, has increased from 278 cedis in January 2023 to 420 cedis ($26 to $40), according to a “Jollof Index” from SBM Intelligence, a Lagos-based consultancy.
Source: Channels TV
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