The Ghana National Chamber of Commerce and Industry (GNCCI) has praised the Bank of Ghana for taking what it calls a “bold and timely” step to ease the cost of borrowing, after the Monetary Policy Committee (MPC) slashed the policy rate by 300 basis points to 25%.
The historic cut, announced on July 30, 2025, at the end of the MPC’s 125th meeting, is the largest on record, and GNCCI says it couldn’t have come at a better time.
A Call That Preceded the Decision
Just five days ago, GNCCI had issued a strong appeal to the central bank, urging a downward revision of the Monetary Policy Rate to stimulate business growth. The Chamber argued that maintaining the 28% policy rate, in place since March 2025, had kept lending rates prohibitively high for domestic firms, many of which were facing rates above 25% since 2022.
GNCCI’s petition highlighted a range of improving indicators it believed justified a rate cut: headline inflation had fallen sharply from 23.8% in December 2024 to 13.7% by June 2025, the cedi had appreciated by about 42% in the first half of the year, and fiscal consolidation measures had tightened government spending and strengthened monetary stability.
“The prevailing 28 percent rate was holding back affordable credit for businesses,” GNCCI stated in that appeal, adding that a 250-basis-point cut would help reduce the cost of capital, stimulate production, and reinforce Ghana’s export-led growth agenda.
Relief and Optimism After the Cut
Following the MPC’s decision to cut even deeper than GNCCI’s request, by 300 basis points instead of 250, GNCCI Chief Executive Officer Mark Badu Aboagye said the move would relieve pressure on companies and unlock fresh investment. He explained that lower policy rates should translate into cheaper loans, which will, in turn, reduce operational costs for businesses across key industries.
“This bold and timely decision will ease pressure on the private sector by lowering lending rates, reducing the cost of doing business, and encouraging investment in critical sectors like manufacturing, agribusiness, and pharmaceuticals,” he said.
The Chamber also pointed out that the MPC’s decision was underpinned by clear signs of improving macroeconomic stability, including a sustained drop in inflation, appreciation of the cedi, and a healthier global financial environment.
Aboagye stressed that the cut could strengthen Ghana’s competitiveness on the continental stage, noting that cheaper borrowing will allow businesses to expand, export more, and better leverage opportunities under the African Continental Free Trade Area (AfCFTA).
“This policy move creates the right conditions for investment in value-adding industries and will help position Ghana more strongly under AfCFTA,” he explained.
The Need for Banks to Act
While commending the Bank of Ghana for striking a balance between price stability and economic growth, the Chamber warned that the benefits of the cut will only be felt if commercial banks pass it on.
“We urge banks and financial institutions to swiftly reflect this policy change in their lending rates,” Aboagye urged, calling on lenders to reduce rates so businesses can truly access affordable credit.
GNCCI also encouraged government and development partners to complement the rate cut with targeted support for small and medium-sized enterprises (SMEs) and export-driven industries, saying that such support, alongside the new policy stance, will accelerate Ghana’s economic transformation.
GNCCI further reaffirmed its commitment to work closely with the Bank of Ghana and other stakeholders, pledging to help create an environment where private-sector-led growth can thrive and drive national development.
