Bernard Osei Tutu, Chief Executive Officer of Dusk Capital, has lauded the Bank of Ghana’s recent 300 basis point reduction in the policy rate from 28% to 25% as a pivotal move that reflects growing confidence in Ghana’s macroeconomic fundamentals.
In an exclusive interview with The High Street Journal, Osei Tutu described the move as “exciting news” for the business community, particularly small and medium-sized enterprises (SMEs) that have long struggled with high borrowing costs.
“Let me first and foremost state that this is exciting news, the policy rate is actually a reference point for lending by commercial banks. So any time the Bank of Ghana brings the policy rate down, it signals to the banks that interest rates must also follow suit.” he stated.
According to Osei Tutu, the rate cut couldn’t have come at a better time. Ghana is currently experiencing positive macroeconomic signals, including falling consumer prices, a stabilizing exchange rate, and a stronger cedi.
“You have situations whereby consumer prices are falling, the cedi is appreciating against the dollar, and exchange rates are stabilizing yet in the past, commercial banks still maintained high interest rates. That doesn’t make economic sense. But now, with what we’re seeing shows that the Bank of Ghana is eyeing all key indicators and making sure that every key economic signal correlates with the others.” he emphasized.
He praised the Bank’s intentionality and coordinated approach. “There’s growing confidence in the disinflation trend. Once consumer prices fall faster than ever, policy rates must also fall and interest rates must follow, that’s the path to real recovery.”
Osei Tutu emphasized that reduced interest rates will ease the cost of borrowing for businesses, which is critical for economic expansion.
“One of the biggest challenges facing businesses is the cost of borrowing. So once that drops, it becomes exciting for SMEs and the broader business community.”
Still, he remains upbeat about the outlook. “Kudos to the Bank of Ghana for aligning all the critical indicators. This is how real transformation begins.”
