The Association of Ghana Industries (AGI) is urging the Bank of Ghana to ease monetary policy further to unlock cheaper credit for the private sector, citing improving macroeconomic conditions.
AGI highlighted that inflation has declined to 5.4 percent, while the cedi has shown relative stability, creating an environment conducive to more affordable borrowing.
The association says these gains should translate into stronger economic growth in 2026, particularly for industrial investment and production.
AGI Chief Executive Officer Seth Twum-Akwaboah emphasized that a more consistent and accommodative credit environment is crucial for supporting investment, job creation, and overall industrial growth.
“In the past, we have seen that a drop in the policy rate doesn’t always lead to lower lending rates. Banks often argue that one-off cuts are not enough.
But when the policy rate consistently falls over several quarters, it builds confidence that interest rates can be reduced accordingly,” he said.
He added that with inflation now low and policy rate reductions consistent, the banking sector is expected to pass on the benefits to borrowers.
“With the stability we have achieved, subsequent policy rate cuts should lead to lower interest rates, giving industry the credit it needs,” Mr. Twum-Akwaboah noted.
AGI’s call for monetary easing comes with the current policy rate standing at 18 percent, and the association believes that further reductions would significantly improve liquidity and expand credit access for industrial players.
