Ghana holds the 8th highest policy rate in Africa, set at 14.0%, among 44 countries surveyed. This ranking comes from the African Development Bank (AfDB) 2026 African Economic Outlook. Ghana shares this 8th position with The Gambia.
This elevated rate persists despite a substantial decrease in Ghana’s policy rate over the past year. The Bank of Ghana cut the policy rate by 9.0% between December 2024 and December 2025. This reduction aimed to address cooling inflationary pressures within the economy.
This trend positions Ghana within a broader African context of central banks responding to inflation. In 2025, African policy rates decreased by an average of 0.98 percentage points. This average rose to 1.33 percentage points by the end of the first quarter of 2026. This reflects a continent-wide effort to ease monetary conditions.
The AfDB report highlights that monetary policy decisions in 2025 were shaped by inflation dynamics. Declining inflation provided an incentive for interest rate cuts across Africa. It noted that four countries, including Ghana, Sierra Leone, Egypt, and the Democratic Republic of Congo, reduced policy rates by 8 percentage points or more.
Despite these cuts, the cost of borrowing in Ghana remains high. The average lending rate in Ghana stood at 16.33% in April 2026, according to the Bank of Ghana. This figure is still significant although it decreased from 20.58% in January 2026. The Ghana Reference Rate also saw a sharp decline to 10.06% in April 2026, from 15.68% in January 2026.
Ghana’s Monetary Policy Rate (MPR) was adjusted significantly by the Bank of Ghana. It moved from an initial high of 28.0% in early 2025 down to 14.0% by May 2026. This adjustment reflected steady disinflation and an improvement in macroeconomic stability. However, in May 2026, the Bank of Ghana maintained the policy rate at 14.0%. It cited risks in the outlook for inflation and economic growth.
The Monetary Policy Committee will continue to monitor incoming data. This includes potential spillovers from geopolitical tensions to the domestic economy. They will take appropriate policy actions when necessary. The Committee also amended the dynamic Cash Reserve Ratio. It set a uniform ratio of 20% in domestic currency, effective June 4, 2026. This measure aims to further stabilize the financial sector.