Ghana’s inflation currently stands at 12.5%
The Bank of Ghana (BoG) has projected that the country’s inflation rate could fall to single digits by the close of 2025, earlier than initially expected.
According to the Central Bank, the outlook is supported by ongoing monetary tightening, fiscal consolidation, and improvements in food supplies, all of which have helped accelerate the pace of disinflation.
“We have seen a rapid disinflation over the past months, and we expect that to be sustained going forward,” Dr Philip Abradu-Otoo said as quoted by myjoyonline.com.
At the beginning of the year, the BoG had anticipated achieving single-digit inflation in the first quarter of 2026.
Lending rates to drop in October after policy rate cut – BoG
However, Dr Abradu-Otoo explained that current economic developments have enabled the Central Bank to bring the target forward to the final quarter of 2025.
He also highlighted that the improved inflation outlook influenced the Monetary Policy Committee’s recent decision to cut its key lending rate by 350 basis points to 21.5%.
Dr Abradu-Otoo assured that the BoG is committed to maintaining monetary stability, stressing that policy consistency and strong reserve accumulation will remain priorities.
“The Bank of Ghana will definitely continue with what we are doing to ensure that things do not get out of hand,” he said.
Responding to concerns about the scale of the policy rate cut, he clarified that while all committee members agreed on the need for a reduction, the final margin was determined through a vote.
“The decision was unanimous in terms of the need for the policy to be cut; however, the margin was based on a vote,” he explained.
SSD/AE
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