Ghana’s rapid return to price stability has significantly improved the cost of borrowing, with average lending rates falling by more than 11 percentage points within a year, the World Bank has reported.
In its 10th Ghana Economic Update, the World Bank said the dramatic easing of inflation created room for the Bank of Ghana to embark on a substantial monetary policy easing programme. Average lending rates, which stood at about 27% in June 2025, had fallen to 15.6% by June 2026.
The central bank’s policy rate followed a similar trajectory, dropping from 28% in April 2025 to 14% by March 2026. The 14-percentage-point reduction represents a cumulative 1,400 basis-point cut, with the rate subsequently maintained through July.
The World Bank described Ghana’s 2025 disinflation as particularly remarkable, noting that headline inflation plunged from 23.2% in February to 5.4% in December. The December figure was the lowest recorded since 1999.
The report linked the improvement to a combination of tight monetary policy, a 28.9% appreciation of the cedi and lower food prices.
It said the gains extended beyond headline inflation, with financial conditions also becoming considerably more favourable for households and businesses.
Despite the progress, the World Bank cautioned that Ghana’s price stability remains exposed to developments outside the country and supply-side pressures. Inflation fell further to 3.2% in March 2026 but climbed to 5.3% by June.
It attributed the renewed pressure partly to higher food and energy import costs, increased energy and fertiliser prices and climate-related disruptions to production.
The conflict in the Middle East also pushed up fuel prices, increasing costs for transport operators, manufacturers and agro-processors.
The government responded with a temporary fuel price relief measure to cushion consumers and businesses, but the World Bank warned that the recent inflation rebound demonstrates the need to protect the gains made during the country’s sharp disinflation episode.
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