Ghana Cuts Key Policy Rate by Record Amount, 350 bps

The Bank of Ghana cut its benchmark monetary policy rate by 350 bps to 21.5% on September 17th, citing sustained disinflation, robust growth, and stronger external buffers. Headline inflation fell to 11.5% in August, the lowest level in four years. Economic activity remained strong, with real GDP expanding 6.3% in Q2 2025 and non-oil GDP rising 7.8%, supported by solid gains in agriculture and services. The external sector continued to strengthen, with a provisional trade surplus of $6.2 billion and gross international reserves of $10.7 billion by the end of August, equivalent to 4.5 months of import cover. The cedi appreciated 21% year-to-date against the US dollar, remaining among the strongest currencies globally. Despite potential risks from utility tariff adjustments, the central bank noted broadly anchored inflation expectations, improved external buffers, and growing domestic confidence, reaffirming its commitment to supporting the recovery without undermining recent gains.