Ghana’s inflation cooled to 9.4% in September 2025, its first single-digit level in more than four years — a milestone that could pave the way for another policy rate cut by the Bank of Ghana (BoG) next month, easing lending costs and reviving business and consumer confidence.
According to a new report by IC Research, the drop signals “a decisive progression towards price stability,” offering the central bank room to relax its monetary stance after years of tightening to contain runaway prices.
the think tank projects that the Monetary Policy Committee (MPC) could deliver another rate cut in November 2025, extending a series of policy adjustments that have already lifted optimism in Ghana’s financial and business sectors.
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“We view the first single-digit headline inflation in September 2025 as confirmation that the Ghanaian economy has progressed decisively towards price stability after over four years of double-digit price increases,” IC Research said.
The latest data show broad-based disinflation across consumer segments. Goods inflation, which makes up more than 70% of the consumer basket, fell 2.7 percentage points to 11.2%, while services inflation eased to 4.8%. Analysts say this cooling reflects exchange rate stabilization and improved supply conditions in key sectors.
These developments could bring relief to businesses and households weighed down by high borrowing costs. Commercial lending rates, currently hovering around 30%, have long squeezed small and medium-sized enterprises (SMEs) and stifled credit expansion.
“The durable moderation in inflation risk has strengthened the case for another cut in the nominal policy rate, with downside scope for domestic bond yields in the fourth quarter of 2025,” IC Research added.
For manufacturers and traders, a rate cut would mean cheaper credit for expanding production, restocking inventory, or hiring more workers. For consumers, it could lower the cost of personal and mortgage loans, freeing up disposable income and spurring demand.
The Accra Street Journal reports that if the Bank of Ghana follows through with a rate reduction next month, it could mark the start of a new phase of monetary easing, one that balances inflation control with growth support—signaling a potential turning point for Ghana’s post-stabilization economy.
Source: Accra Street Journal
Last Updated on October 28, 2025 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
