The Monetary Policy Committee (MPC) of the Bank of Ghana has begun its first meeting of 2026 to review the country’s policy rate, with analysts projecting cuts of up to 500 basis points.
The benchmark rate currently stands at 18 per cent. However, the Governor of the central bank has signaled a cautious approach, despite notable improvements in Ghana’s macroeconomic indicators.
Speaking on TV3’s Business Focus on Monday, 26 January 2026, financial economist Dr Eric Boachie-Yiadom said a substantial reduction in the policy rate would reflect the progress made in stabilising the economy.
The Africa Policy Lens fellow said “I have consistently called for a sharp cut in the policy rate, adding that “a reduction of between 400 and 500 basis points would be appropriate if economic data continued to support the gains being recorded.”
Meanwhile, financial analyst Nelson Cudjoe Kuagbedzi projected a more moderate cut of up to 350 basis points.
The finance and tax analyst said the Governor’s recent public comments suggested a strong focus on achieving single-digit lending rates. He noted that “such an objective could justify an initial cut of around 350 basis points at the conclusion of the MPC meeting.”
Mr Kuagbedzi added that ”future adjustments would depend on how economic conditions evolve, with the possibility of revisions if inflationary pressures re-emerge.”
Meanwhile, Ghana has recorded a steady decline in inflation in recent months, alongside relative currency stability and improved fiscal discipline following the completion of its domestic debt restructuring programme. These developments have renewed calls for lower interest rates to support private-sector growth and reduce the cost of borrowing.
