Serrari Group

In a surprising move, the Bank of Ghana has decided to reduce its benchmark interest rate for the first time since 2021. The monetary policy committee, in a meeting on Monday, announced a cut from 30% to 29%, breaking a trend of rate stability that had been in place since September. This decision, contrary to the expectations of most analysts, comes as the central bank anticipates a continued slowdown in inflation while prioritizing economic support.

Annual inflation, a key factor in the decision-making process, saw a significant decline to a 21-month low of 23.2% in December, down from 26.4% the previous month.

Governor Ernest Addison, speaking at a news conference in the capital, Accra, stated, “The latest forecasts suggest that the disinflation process will continue, and headline inflation is expected to ease to around 13% to 17% by the end of 2024, before gradually trending back to within the medium-term target range of 6% to 10% by 2025.”

Despite the optimistic outlook, Governor Addison acknowledged potential risks to the inflation trajectory. He emphasized the importance of strict implementation of the 2024 budget and maintaining a tight monetary policy stance to sustain the disinflation process. The monetary policy committee recognizes the emerging economic recovery but sees the need to uphold a robust policy stance to consolidate the gains achieved in disinflation.

This move by the Bank of Ghana marks the first interest rate cut by an African central bank in the current year. The local currency, the cedi, experienced a slight decline to 12.31 per dollar following the announcement, while the nation’s dollar bonds maturing in 2032 rose 0.25 cents to 43.83 cents on the dollar.

The decision comes amid caution from the International Monetary Fund (IMF), which recently agreed to disburse a second tranche of $600 million to Ghana under the country’s three-year bailout program. The IMF has suggested that inflation remains too high, recommending a “sufficiently high monetary policy stance” to address the situation.

Ghana sought IMF assistance in July 2022 after its dollar bonds faced a plunge, and austerity measures failed to convince investors of its ability to meet debt obligations. Almost a year later, the IMF approved a $3 billion program, and Ghana is currently working on restructuring almost all of its $47 billion debt to ensure sustainability under the program. The nation has reached an in-principle deal with bilateral creditors and aims to secure an agreement with eurobond holders by the end of March.

By Delino Gayweh
Serrari Financial Analyst
January 29, 2023

Share this article:
Article and News Disclaimer

The information provided on is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

In no event will be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.

The articles, news, and information presented on reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.

The content on may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.

Every effort is made to keep the website up and running smoothly. However, takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.

Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.

By using, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website., reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.

Serrari Group 2023