Ghana’s Central Bank Slashes Rates — Could Uganda and East Africa Feel the Impact?

Ghana cuts interest rate by 350 bps as inflation plummets — a move that may ripple across regional capital flows and borrowing costs.

Accra / Kampala . The Bank of Ghana (BoG) announced a major interest‑rate cut, reducing its policy rate by 350 basis points to 18.0%. The decision came after inflation dropped sharply — easing to near 8% following sustained tight monetary policy.

The cut marks the third major reduction this year (coming after similar moves in July and September), totaling a cumulative 1,000 bps of rate reductions across 2025 as the central bank targets macroeconomic stability and growth revival.

Analysts say the move could re‑energize credit‑driven growth in Ghana and beyond, possibly prompting investors to re-evaluate regional fixed‑income assets. For neighbouring economies such as Uganda, this could sway cross‑border capital flows, borrowing costs, and regional bond yields.

Why it matters
Ghana’s rate cut could shift investor sentiment across West and East Africa, altering inflows into regional debt or private-sector credit. For Uganda — already borrowing heavily — changed regional interest rates might affect cost of borrowing, yield on government securities, and attractiveness of regional investment.

What to watch for

Whether Ugandan interest rates, bond yields, or credit costs adjust in response.

Movement of foreign investment between regional markets — could Ghana attract capital away from East Africa or vice‑versa.

Impact on export/import trade costs, exchange‑rate pressure and inflation in neighbouring economies.