Ghana slashes interest rates following economic turnaround

Ghana slashes interest rates following economic turnaround

Ghana slashed its main interest rate by 2.5 percentage points, a sign that the country’s worst economic crisis in a generation may be easing. Consumer inflation has fallen by almost 90% since 2023 in the West African nation, which for years faced soaring prices and cooling growth. Accra’s remarkable turnaround — even Ghana’s president has said he has been surprised at the pace of change — has lifted many out of poverty, with the share of the nat…

Reduction in Proportion of Gold Reserves not Weakness

Mr. Richmond Eduku, a prominent Finance Analyst, has clarified that the recent adjustment in the ratio of Ghana’s gold holdings within its gross international reserves is a strategic masterstroke rather than a sign of economic fragility. By rebalancing these assets, the Bank of Ghana (BoG) has transitioned from a period of “idle accumulation” to a more dynamic, liquid reserve posture that actively supports the national economy. This tactical shi…

Ghana Cuts Benchmark Interest Rate to 15.50% as Inflation Eases

Ghana’s central bank has reduced its benchmark interest rate by 250 basis points to 15.50 per cent, marking the lowest level in four years, as easing inflation gives policymakers room to continue supporting economic growth. The decision, announced on Wednesday by the Bank of Ghana, was larger than most economists had anticipated. With the latest move, the central bank has lowered its main lending rate by a cumulative 12.5 percentage points since…

BoG cuts gold exposure by 50% on concentration concerns

…slashes benchmark policy rate By Joshua AMLANU & Ebenezer NJOKU The Bank of Ghana (BoG) has reduced the share of gold in its reserves by 51 percent and reinvested the proceeds into foreign-currency assets – betting on yield and liquidity even as bullion prices hit record highs, Governor Dr. Johnson P. Asiama has stated. The central bank said this move is a deliberate rebalancing rather than a retreat from gold, arguing that reserve accumulation…