Business
Bank of Ghana Cuts Policy Rate to 15.5%: Full Reasoning and Economic Outlook
In a closely watched economic policy decision, the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has reduced the Monetary Policy Rate (MPR) by 250 basis points to 15.5%, citing improved inflation dynamics and the need to support credit expansion and economic growth.
This move was reached by majority decision at the MPC’s 128th meeting, held in January 2026.
Four of the six MPC members voted for the rate cut to 15.5%, while the remaining two proposed a deeper cut to 15%, indicating nuanced views within the committee about balancing inflation control with growth support. The majority’s decision reflects optimism that the economy is entering a phase in which tighter monetary conditions can be eased without jeopardising price stability.

Central to the MPC’s reasoning is the significant progress Ghana has made in taming inflation. The disinflation process in 2025 was “substantial and sustained,” with headline inflation falling sharply from 23.8% in January 2025 to 5.4% by December, driven by tight monetary policy, fiscal discipline, improved supply conditions, and exchange rate stability.
Despite the downward march in inflation over the year, the committee emphasised that monetary conditions remained tight relative to prevailing price dynamics — a signal that there was room to ease rates without igniting inflationary pressures. Strong reserve buffers and a strengthened external position also provided confidence that Ghana could cushion potential shocks from global commodity market volatility or adjustments to utility tariffs.
Another factor in the decision was expectations around economic growth. The MPC forecasts that GDP growth will remain robust in 2026, with the output gap estimated to narrow modestly, suggesting that the economy is recovering momentum, with rising demand and strengthening activity across sectors.
While acknowledging ongoing risks — such as possible utility price adjustments, wage pressures, and external supply constraints — the majority concluded that the balance of risks was tilted to the downside, providing justification to lower the policy rate. In doing so, the committee intends to begin normalising real interest rates, foster credit growth, and sustain confidence that inflation will stay within the Bank’s medium-term target band.
Key elements of the MPC’s outlook include:
- Anchored inflation expectations: Survey-based forecasts suggest inflation remains on target barring major shocks.
- Financial stability: Improved banking sector indicators and stronger reserves enhance resilience against external volatility.
- Support for private sector: Lower policy rates can reduce lending costs and stimulate investment and consumption.
The committee also reiterated its data-dependent approach to future rate decisions, noting that continued improvement in inflation metrics could warrant further easing later in 2026. However, members remained attentive to downside risks from global price pressures and the potential impact of domestic utility adjustments that might alter inflation paths.
Overall, the MPC’s decision reflects cautious optimism about Ghana’s macroeconomic trajectory and a pivot towards monetary conditions that support economic recovery while safeguarding price stability.
Business
Ghana Nears Approval of Cannabis Licences as Country Prepares to Launch Regulated Industry
Accra, Ghana – Ghana’s Narcotics Control Commission (NACOC) is in the final stages of reviewing applications for cannabis licences, with successful applicants expected to receive approval to begin operations soon, marking a significant milestone in the country’s efforts to develop a legal and regulated cannabis sector.
Deputy Director-General for Enforcement, Control, and Elimination, Alexander Twum-Barimah, disclosed this while speaking at the Kwahu Business Forum on Saturday.
He emphasised that the review process has been “thorough and deliberate” to ensure that only applicants who fully meet all legal, regulatory, and security requirements are granted licences. NACOC officials engaged with potential investors at the forum’s exhibition stand, providing details on various licence categories, including cultivation, processing, distribution, and export.
Mr Twum-Barimah stressed that the commission is committed to building a properly regulated industry that creates legitimate economic opportunities while maintaining strict controls to prevent misuse and illegal activities.
“The goal is to strike a balance between enabling economic development and safeguarding public health and security,” he said.
All licence holders will be subject to ongoing monitoring and compliance checks.
The development signals Ghana’s intention to harness the economic potential of cannabis through job creation, investment, and export revenue, while aligning with international best practices in regulation. Further updates on the licensing process are expected in the coming weeks.
Business
3 Things Ghana is Doing to Reduce Fuel Prices Amid Global Uncertainty
Accra, Ghana – As global oil prices continue to surge due to the ongoing Middle East conflict, the Ghanaian government has announced immediate and practical measures aimed at cushioning citizens from the impact of rising fuel costs.
Following an emergency Cabinet session chaired by President John Dramani Mahama, the government outlined three key interventions focused on direct price relief, affordable public transportation, and cutting unnecessary government expenditure on fuel.
Here are the 3 major steps Ghana is taking:
1. Suspension of Selected Taxes and Margins on Fuel
Ministers of Finance and Energy have been directed to suspend certain taxes and margins in the next fuel pricing window. This temporary reduction, which will last for four weeks (subject to review based on developments in the Middle East and global crude prices), is expected to ease the burden on consumers and transporters.
2. Massive Expansion of Affordable Metro Mass Transit Buses
The Minister for Transport has been tasked with fast-tracking the deployment of 100 newly acquired Metro Mass Transit buses onto high-traffic routes across the country. These state-owned buses will maintain significantly lower fares compared to private operators, offering citizens a cheaper and more reliable alternative for daily commuting.
3. Strict Enforcement of Ban on Fuel Allocations for Government Officials
All Ministers and senior government appointees have been reminded to strictly comply with President Mahama’s earlier directive cancelling fuel allocations and allowances. This move is aimed at reducing government expenditure on fuel and demonstrating leadership in belt-tightening during these challenging times.
These interventions form part of the government’s broader strategy to protect the economy and citizens from external shocks while hoping for de-escalation in the Middle East conflict.
Business
Upcoming Super El Niño Threatens to Worsen Global Food Crisis Amid Iran Conflict
Climate scientists and food security experts are warning that a powerful “super El Niño” expected later in 2026 could significantly intensify global food price pressures already heightened by the ongoing Middle East conflict involving Iran.
According to US meteorologists, there is roughly a one-in-three chance of a strong El Niño forming between October and December, while European models suggest an even higher probability of an exceptionally strong event.
A “super El Niño” occurs when sea surface temperatures in the eastern Pacific rise at least 2°C above normal. This phenomenon typically triggers extreme weather patterns, including severe droughts in key agricultural regions, which can sharply reduce crop yields for commodities such as cocoa, rice, sugar, food oils, coffee, bananas, and soy.
The timing is particularly concerning because the Iran conflict has already disrupted global fertilizer supplies and shipping routes through the Strait of Hormuz, driving up costs for fuel and agricultural inputs. Analysts say the combination of war-induced supply shocks and El Niño-driven weather extremes could create a “double squeeze” on food production and prices. The United Nations World Food Program has cautioned that prolonged conflict and elevated oil prices could push the number of acutely food-insecure people globally significantly higher.
Dawid Heyl of Ninety One noted that while the Russia-Ukraine war affected food markets, the current situation is more worrying due to its direct impact on fertilizer production and availability.
He warned that overlapping negative factors — geopolitical disruption and strong El Niño conditions — could prove especially damaging for vulnerable countries in Africa, India, Australia, Brazil, and Argentina.
Experts state that long-term resilience will require greater investment in climate adaptation, diversified supply chains, and international cooperation to protect global food security as geopolitical and climate risks increasingly intersect.
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