- Inflation: Headline inflation fell to 11.5% in August—the eighth straight monthly drop—from 12.1% in July. Core inflation is also down, and the BoG projects inflation will reach the medium-term target of 8% ±2% by Q4 2025.
- Lending Rates: Average lending rates declined to 24.15% in August, from over 30% at the start of 2025. The 91-day Treasury bill yield dropped to 10.3% in August from 13.4% in July.
- Economic Growth: GDP expanded 6.3% in Q2 2025, up from 5.7% in Q2 2024. Excluding oil, growth was 7.8%, driven by services (9.9%) and agriculture (5.2%).
- Fiscal Performance: The budget deficit narrowed to 1.1% of GDP by July, outperforming the 2.1% target, while public debt fell sharply to 44.9% of GDP from 61.8% in 2024.
- Banking Sector: Capital adequacy improved to 17.7%, and non-performing loans declined to 20.8%, though the BoG cautioned that credit risk remains elevated.
- External Sector: Trade surplus widened to US$6.2 billion (Jan–Aug 2025) from US$2.1 billion a year earlier. Gross reserves stood at US$10.7 billion, equal to 4.5 months of import cover.
BoG Extends Easing Cycle, Cuts Policy Rate to 21.5%
The Bank of Ghana (BoG) has lowered its monetary policy rate by 350 basis points to 21.5%, the lowest since 2019, signalling strong confidence that inflation will keep easing while economic growth stays robust.
Announcing the decision after the September Monetary Policy Committee (MPC) meeting, Governor Dr. Johnson Asiama said the cut extends the bank’s ongoing easing cycle, following a 300bps reduction in July.
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