Ghana has been ranked eighth in Africa for having one of the highest policy rates, according to the African Development Bank’s (AfDB) 2026 African Economic Outlook, despite a notable reduction in its rate over the past year.
The country’s policy rate currently stands at 14.0%, placing it jointly in eighth position alongside The Gambia among 44 African countries assessed. Zimbabwe tops the list with 30.0%, followed by Nigeria, Malawi, Egypt, Angola, Sierra Leone, and Liberia.
Francophone West African countries using the CFA franc recorded some of the lowest policy rates on the continent.
The report also highlighted that Ghana recorded the most significant reduction in its policy rate in 2025. The Bank of Ghana reduced the rate by 9 percentage points between December 2024 and December 2025, with further easing continuing into 2026 as inflation pressures declined.
AfDB noted that several African central banks cut rates in response to easing inflation, with Ghana among four countries that reduced rates by more than eight percentage points.
Despite these reductions, borrowing costs in Ghana remain relatively high. The average lending rate stood at 16.33% in April 2026, down from higher levels earlier in the year, while the Ghana Reference Rate also declined significantly.
The Monetary Policy Rate, which was 28% at the beginning of 2025, has been gradually reduced to 14% by May 2026, reflecting improving macroeconomic conditions and easing inflation.
However, the Bank of Ghana maintained the 14% rate in its most recent review, citing risks to inflation and economic growth, including global geopolitical tensions. The central bank also adjusted reserve requirements as part of its broader monetary policy stance.
Source: myjoyonline.com
