Ghana’s central bank cut its benchmark interest rate by three percentage points on Wednesday, signaling cautious optimism amid easing inflation.
The Bank of Ghana lowered the rate from 28 percent to 25 percent, marking the first cut in over a year. This move comes as the cedi currency recovers, appreciating more than 40 percent against the US dollar since early 2025.
Governor Johnson Pandit Asiama said the bank remains “committed to our price stability mandate while creating conditions for sustainable growth.” Inflation, though still rising, eased to 13.7 percent year-on-year in June, the sixth consecutive monthly drop.
Food inflation remains stubborn, standing at 16.3 percent in July, outpacing overall inflation. Ghana, a major cocoa and gold exporter, benefits from stronger external buffers and rising exports, boosting investor confidence.
The International Monetary Fund praised Ghana’s progress in economic reforms and debt restructuring after President John Mahama took office in January. Yet, many Ghanaians still feel the pinch as the cost of living rises despite marginal income gains.
The “Jollof Index” by Lagos-based SBM Intelligence shows the cost of cooking jollof rice jumped from 278 cedis ($26) in January 2023 to 420 cedis ($40) in June 2025. Prices for staples have recently stabilised, helped by reduced fuel and transport costs.
SBM notes households have seen slight increases in disposable income compared to the hardships of 2023 and 2024. As Ghana cautiously emerges from economic turmoil, the central bank’s rate cut signals hope but underscores ongoing challenges for everyday life.