The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has cut the policy rate by 150 basis points to 14 percent, the second consecutive time this year. In January, the committee reduced the policy rate from 18 percent to 15.5 percent.

Speaking at a press conference on March 18, 2026, the Governor of the Bank of Ghana, Dr. Johnson Asiama said the decision was made to support economic growth while keeping inflationary pressures in check. He added that the committee also considered the impact of the geopolitical tensions in the Middle East on Ghana's economy.

"Rising geopolitical tensions in the Middle East have deepen uncertainty in the external sector. The bank’s latest forecast suggested that headline inflation would remain within the medium term target. Outside risks to the inflation outlook include the likely pass-through of higher crude oil prices and escalating geopolitical tensions", he said.

He, however explained that the committee examined all the likelihood of Ghana's economy, suffering from external factors and decided to cut the policy rate to 14 percent.

He stated that the assessment was undertaken with an eye on domestic issues and other macro indicators.

“The Monetary Policy Committee has considered the current economic conditions, including subdued credit growth and declining non-performing loans, and decided that a reduction in the policy rate is appropriate to stimulate lending and investment.”

He added, “Our goal remains to ensure a stable financial system while supporting households and businesses to access affordable credit. This cut is expected to ease borrowing costs and promote economic activity.”

The Governor also highlighted that the banking sector remains strong and well-capitalized, despite slower credit growth, noting that, “Total assets in the banking sector have increased, and the stock of non-performing loans has declined, reflecting resilience in the financial system.”