Ghana cuts benchmark interest rate by 3% as inflation eases

Ghana's central bank on Wednesday cut its benchmark interest rate by 3% on the back of easing inflationary pressures, as the West African country emerges from a severe economic crisis.

The Bank of Ghana announced that its benchmark rate would drop from 28% to 25% – the first such reduction in more than a year, which comes as the cedi currency has recovered against the dollar.

"We remain committed to our price stability mandate while creating the conditions for sustainable growth," the bank's Governor Johnson Pandit Asiama said.

While prices are still rising in the major cocoa and gold producer, inflation eased in June to 13.7% year-on-year – the sixth consecutive monthly drop.

Cedi's sharp appreciation

At the same time, the cedi has appreciated by more than 40% against the US dollar since the start of 2025, supported by stronger external buffers, rising exports and growing investor confidence.

Earlier July, the International Monetary Fund (IMF) said Ghana was making headway in its economic reforms and debt restructuring that the government has embarked on since President John Mahama took the oath of office in January.

Food inflation has also eased, but remained above overall inflation in July, at 16.3%.