The Bank of Ghana plans to start reducing its benchmark interest rate in the second half of 2025. Fitch Solutions forecasts a drop of 200 basis points to 26% by the end of the year

The Bank of Ghana's anticipated policy change follows nearly two years of monetary tightening aimed at curbing inflation and stabilizing the CEDI. Further cuts totalling 300 basis points are expected in 2026, which could bring the rate down to 23% as economic conditions improve. The forecasts reflect the gradual decline in inflation in Ghana, supported by stable exchange rates and the fall in global energy prices. The central bank surprised the markets in March 2025, by increasing its key rate by 100 basis points, bringing it to 28%, showing the continued caution of the new governor, Dr. Johnson Asiama

The expected stability of the cedi is critical to these prospects; the currency is expected to trade at an average of GHS 15.3 per US dollar in 2025 before stabilizing at GHS 15.5 by the end of the year.