In a bold move signaling confidence in Ghana’s economic recovery, the Bank of Ghana announced a record-breaking interest rate cut of 350 basis points on Wednesday, reducing its main rate to 21.5%. This decision marks the second consecutive aggressive rate reduction, following a 300 basis point cut in July, bringing the cumulative reduction to 650 basis points over two meetings. The central bank’s decision reflects a sustained decline in inflation and an improving macroeconomic outlook in the West African nation, renowned for its gold and cocoa production. Economists had anticipated a more modest cut of 200 basis points, but the Monetary Policy Committee (MPC) opted for a more substantial reduction, citing favorable economic conditions. Leslie Dwight Mensah, an economist at the Institute for Fiscal Studies, praised the move, stating, ‘The MPC has been emboldened by the expectation that inflation will soon reach the target range of 8-10%. This is a positive development for the economy, particularly the real economy sector.’ Bank of Ghana Governor Johnson Asiama highlighted the nation’s robust economic growth, with GDP expanding by 6.3% year-on-year in the second quarter of 2025, up from a revised 5.7% in the same period last year. The services sector showed particularly strong improvement. Inflation has also been on a steady decline, dropping for the eighth consecutive month to 11.5% in August, the lowest since October 2021. Asiama expressed optimism that inflation would continue to ease, projecting it to fall within the bank’s target range of 8% (±2%) by the end of the fourth quarter. This rate cut is expected to stimulate economic activity, particularly in sectors sensitive to borrowing costs, further solidifying Ghana’s recovery trajectory.