BoG- Policy Rate Cut Poses No Risk to Ghana’s Economy

March 18, 2026 

Governor of the Bank of Ghana, Johnson Asiama, has dismissed concerns that the central bank’s decision to reduce the policy rate by 150 basis points could negatively impact the economy.

Speaking to the media after the announcement, Dr. Asiama explained that the decision followed a comprehensive assessment of prevailing economic conditions, aimed at supporting growth while maintaining inflation control.

“This cut isn’t problematic? Not at all. We reviewed extensive data, assessed the outlook, and evaluated key issues. The banking sector is now solvent, liquid, and expanding in terms of assets,” he stated.

The policy rate has been reduced to 14 percent, marking the second consecutive cut in 2026.

The Governor’s remarks come amid rising global concerns over inflationary pressures linked to geopolitical tensions, particularly conflicts in the Middle East, which have contributed to increasing crude oil prices and heightened uncertainty in the global economy.

Despite these external risks, Dr. Asiama expressed confidence in Ghana’s economic resilience.

“While we remain mindful of external risks, including those from distant conflict zones, the recent policy decision reflects a careful balance—one that safeguards domestic stability while supporting economic activity,” he noted.

He further assured that the central bank will continue to closely monitor global developments and adjust its policy stance when necessary to sustain economic stability.

“Our focus is to keep the economy on a stable path. This requires vigilance in the face of global uncertainties, as well as confidence in the progress made so far,” he added.

The decision underscores the central bank’s commitment to balancing economic growth with price stability amid evolving global and domestic conditions.