The Bank of Ghana (BoG) has slashed its Monetary Policy Rate (MPR) by 350 basis points to 18%, marking a major step toward stimulating economic activity and reducing the cost of borrowing.

The Monetary Policy Committee (MPC) announced the decision on Wednesday, citing improved macroeconomic stability and continued progress in bringing inflation under control.

The sharp reduction is expected to translate into lower lending rates across the banking sector, offering much-needed relief to businesses and households facing high credit costs.

Governor Dr. Johnson Asiama noted that the MPC remains committed to monitoring domestic and global economic conditions and will take further policy measures when necessary to sustain the country’s recovery.

This latest adjustment brings the total policy rate reduction in 2025 to 1,000 basis points, a clear signal of the central bank’s confidence in Ghana’s economic outlook.

The rate cut is anticipated to boost investment, stimulate business activity, and support overall economic growth while maintaining the gains made in price stability.