Ghana's central bank has cut its key interest rate from 28% to 25%, the largest reduction in its history, as inflation continues to ease and the country shows signs of economic recovery.
Consumer inflation fell for the sixth straight month in June, reaching 13.7% year-on-year, down from 18.4%. The local currency, the cedi, has also strengthened by over 40% against the US dollar since the start of the year, supported by higher exports and improving investor sentiment.
Despite these positive trends — including lower fuel and transport costs — many Ghanaians still struggle with a high cost of living. Food inflation remains elevated at 16.3%.
The IMF recently noted that Ghana is making progress in its economic reforms and debt restructuring efforts under President John Mahama’s leadership.
