Ato Forson hails Bank of Ghana’s 18% policy rate cut as major turning point in national economic recovery

Finance Minister Dr Cassiel Ato Forson has welcomed the Bank of Ghana‘s decision to reduce the policy rate to 18 per cent, describing it as a major breakthrough in the country’s economic recovery efforts.

The new rate, the lowest since March 2022, marks a significant step in the central bank’s ongoing monetary policy easing.

Announcing the development, Dr Forson said the adjustment reflects sustained macroeconomic stability and a sharp decline in inflation.

Ghana’s inflation rate, which stood at 27 per cent in November 2024, has now fallen to 8 per cent as of October.

He highlighted that the latest decision represents a deep 350 basis point cut, which he believes will directly support lending and reduce the financial burden on businesses and households.

He explained that the lower rate signals growing economic confidence, paving the way for cheaper borrowing, improved access to credit and stronger opportunities for business expansion, investment and job creation.

According to the minister, the shift underscores momentum in the country’s recovery and sets the stage for a more supportive financial landscape.

“The recovery is clearly strengthening, and it can only get better,” he concluded, affirming optimism in the trajectory of the economy.

Economists say the policy cut is expected to stimulate private-sector growth, boost production and broaden economic activity as credit becomes more accessible across various sectors.