Ghana’s central bank slashed its main interest rate by 300 basis points — the largest cut in the bank’s history.
Bank of Ghana Governor Johnson Asiama said the step, which lowered the rate to 25%, was taken because inflation had slowed significantly in recent months. “The committee will continue to assess incoming data and likely reduce the policy rate further should the disinflation trend continue,” Asiama told reporters.
Annual inflation slowed to 13.7% in June, largely due to a rally by the cedi, one of the best-performing currencies against the dollar this year: Africa’s top gold exporter has benefited from a spike in the price of the precious metal, which has boosted foreign exchange reserves.