The Financial institution of Ghana (BoG) will decrease its benchmark rate of interest to 23.00% by the top of 2025 and 20.00% by the top of 2026, Fitch Options has revealed in its newest report on Ghana.
This follows a steep 300-basis factors (bps) reduce to 25.00% in July 2025.
In a paper on “Financial Easing To Persist In Ghana Till Mid-2026”, the UK-based agency stated its forecast of an additional 200 foundation factors of cuts in 2025 and 300 bps in 2026 stays extra conservative than the Focus Economics consensus, which expects 583 foundation factors of easing over the subsequent yr and a half.
“We anticipate that the BoG will reduce the coverage fee by 100bps to 24.00% at its subsequent Financial Coverage Committee (MPC) assembly in September [2025]”, it estimated.
Lengthy-Time period Curiosity Price Trajectory
Fitch Options anticipates that the central financial institution will reduce the coverage fee by one other 100bps in November 2025 and that the easing cycle will proceed within the first half of 2026.
“As gold costs stay elevated, amid international commerce uncertainty and geopolitical dangers, the cedi will stay secure over the approaching quarters, which can proceed to restrict imported worth pressures. Certainly, we forecast common inflation to reasonable from 22.9% in 2024 to fifteen.5% in 2025 and 12.2% in 2026, permitting the BoG to take care of a dovish stance on the ultimate MPC assembly of 2025 and the primary three conferences of 2026”, it added.
At its final assembly, the MPC of the Financial institution of Ghana reduce its coverage fee by 300 foundation factors to 25%. It cited a major easing in inflation and a strong native forex.
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