A boat on the beach in Ghana

Ghana Interest Rate

Ghana Interest Rate

BOG Policy Rate in Ghana

The BOG Policy Rate ended 2022 at 27.00%, up from the 14.50% value at the end of 2021, and above the 16.00% rate a decade earlier. For reference, the average policy rate in Sub-Saharan Africa was 11.80% at the end of 2022. For more interest rate information, visit our dedicated page.

Ghana Interest Rate Chart

Note: This chart displays Policy Interest Rate (%) for Ghana from 2014 to 2023.
Source: Bank of Ghana.

Ghana Interest Rate Data

2018 2019 2020 2021 2022
BoG Policy Rate (%, eop) 17.00 16.00 14.50 14.50 27.00

Bank of Ghana kicks off loosening cycle in January, surprising markets

At its first scheduled meeting of 2024 on 23–26 January, the Monetary Policy Committee of the Bank of Ghana (BoG) kickstarted its loosening cycle, slashing its policy rate by 100 basis points to 29.00%. The move, which was the first cut since May 2021, took markets by surprise as a third hold had largely been anticipated.

The cut aimed to support activity, as the Bank noted that GDP growth remained below potential despite continued economic recovery through Q3 2023. The move was further backed by a consolidating downward trend in inflation: Sound monetary policy and a relatively stable exchange rate drove headline inflation down to 23.2% in December 2023 from its peak of 54.1% 12 months earlier. Similarly, core inflation more than halved to 24.2% in December 2023 from December 2022. Market agents’ inflation expectations have also declined.

The BoG’s communiqué was void of explicit forward policy guidance. The Bank expects inflation to ease to 13–17% by the end of this year and to fall within its 6.0–10.0% target band in 2025. It added that monetary policy would remain tight to achieve these targets, noting that upside risks to the inflation outlook remained. Although virtually all of our panelists see further rate cuts this year, there is a large spread: Between 100–1,300 basis points worth of additional cuts have been penciled in. The next monetary policy meeting is scheduled for 20–22 March, with the decision to be announced on the 25th of the month.

Consensus Forecasts and Projections for the next ten years

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Ghanaian interest rate projections for the next ten years from a panel of 12 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Ghanaian interest rate.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Ghanaian interest rate projections.

Want to get access to the full dataset of Ghanaian interest rate forecasts? Send an email to info@focus-economics.com.

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