The Monetary Policy Committee reduced Ghana’s benchmark interest rate by 300 basis points to 25% during its 125th meeting on July 24, 2025.
Official records confirm this marks the first rate cut under the Mahama administration, aligning with the Bank of Ghana’s disinflation strategy.
Finance Ministry data indicates commercial lending rates averaged 32.5% in Q2 2025. Banking sector guidelines suggest the policy adjustment could lower borrowing costs for businesses if fully transmitted. The Central Bank’s statement linked the decision to declining inflation, now at 15.3% from 2022 peaks exceeding 54%.
Private sector associations have historically cited high credit costs as growth barriers. Parliamentary committee reports show outstanding business loans exceeded GH₵42 billion as of May 2025. Revised banking regulations require quarterly transmission reports to monitor rate adjustments.
Economic observers note transmission speed determines real impact. Bank of Ghana records from 2024 show similar cuts took 60-90 days to reflect in commercial rates. The Monetary Policy Committee will reconvene in October 2025.
