The Ghana Union of Traders Association (GUTA) has thrown its weight behind the Bank of Ghana’s decision to slash the policy rate by 300 basis points, saying the move will ease borrowing costs and open up credit for traders and businesses across the country.
Speaking to the High Street Journal after the announcement, GUTA President Dr. Joseph Obeng explained that the reduction from 28 percent to 25 percent would create a more supportive climate for commerce. He noted that cheaper credit typically translates into greater business confidence.
“When interest rates come down, the cost of borrowing will ease, and that creates the right environment for businesses to thrive,” he said, adding that the cut will also boost liquidity in the system. “Businesses will benefit from that.”
Dr. Obeng stressed that the Bank of Ghana had been deliberate and measured in its approach, balancing recovery efforts with economic stability. He pointed out that the central bank’s broader goal has been to keep money flowing into the economy without triggering fresh inflationary pressure. “The Bank of Ghana is treading cautiously. At the same time, they want to encourage innovation and support liquidity. That has been their strategy, and with the good signs we are seeing, I believe the rate will still come down again,” he said.
On July 30, 2025, the Monetary Policy Committee (MPC) stunned markets by lowering the policy rate from 28 percent to 25 percent, the steepest single cut on record. Analysts had widely predicted a 200-basis-point reduction, but the MPC opted for a more aggressive stance to reflect growing confidence in Ghana’s economic outlook.
The decision comes amid a rapid cooling of inflation, which fell from 18.4% in May to 13.7% in June 2025, the lowest reading in over three years. That trend, combined with fiscal consolidation efforts and improved investor sentiment, gave the central bank room to ease its tight monetary stance.
Economists expect the cut to drive down commercial lending rates in the coming weeks, offering relief to businesses long burdened by high interest costs.
For GUTA, the rate cut is welcome news, but its full impact depends on whether banks adjust their lending rates. As Dr. Obeng told the High Street Journal, “This is welcome news. If the banks reflect this in their lending rates, traders and businesses will be better positioned to invest and grow. At the end of the day, it’s a good move for Ghana’s economy.”
