Ghana's real interest rates remained positive in April 2026, according to the Bank of Ghana's May 2026 Monetary Policy Report. This indicates that the country maintained a tight monetary policy stance, even as key interest rates saw significant reductions.
The Monetary Policy Rate (MPR) declined sharply to 14.0% in April 2026, down from 28.0% a year earlier. This 14-percentage point reduction reflects the Bank of Ghana's ongoing efforts to ease monetary policy. It follows sustained improvements in macroeconomic fundamentals and a continuous moderation in inflation since the latter half of 2025.
This positive real interest rate environment means that returns on investments, after accounting for inflation, are still growing. This trend aligns with broader economic stability efforts in Ghana. The continuous disinflation process has allowed the central bank to reduce borrowing costs for businesses and individuals. This supports investment and economic activity. Declining policy rates are a key indicator of a more stable economic outlook, fostering investor confidence.
Dr. Johnson Asiama, Governor of the Bank of Ghana, highlighted that interest rate developments reflected a less restrictive monetary policy environment. He stated that the sustained disinflation process, observed since the second half of 2025, was a key factor. This shift signals a proactive approach to managing Ghana's economic landscape.
Looking ahead, the positive real interest rates will likely continue to attract foreign investment, supporting the Ghana cedi. Businesses might find it cheaper to borrow, potentially boosting expansion and job creation. Policymakers will monitor inflation trends and global economic conditions to adjust the monetary policy stance. Market participants will watch for further policy rate adjustments and their impact on bond yields and lending rates. The government's efforts to reduce domestic financing costs will remain a critical area of focus.
The Interbank Weighted Average Rate (IWAR) also dropped significantly to 10.4% in April 2026, from 26.9% a year earlier. This downward adjustment in the IWAR reinforces the easing monetary policy stance. The average lending rate of banks subsequently eased to 16.3%, compared to 27.4% in April 2025. This shows a direct pass-through of the policy rate reduction to market rates. Real rates, however, stayed broadly positive. This is because disinflation happened faster than the declines in nominal rates during the same review period. This dynamic helps protect the real value of savings and investment returns.
Developments in the Treasury bill market mirrored the general decline in interest rates. Rates for the 91-day, 182-day, and 364-day Treasury bills fell sharply. They reached 4.9%, 6.8%, and 10.0% respectively. A year earlier, these rates were 15.5%, 16.2%, and 18.6%. This substantial decline indicates strong investor demand for short-term government securities. It also reflects improved inflation expectations and ongoing efforts to lower the government's domestic financing costs. Conversely, rates on medium to long-term government securities, such as 2-year to 20-year bonds, remained largely unchanged. This is due to limited activity in that specific market segment.