The Bank of Ghana’s Monetary Policy Committee (MPC) has begun its three-day meeting on September 15, 2025 with focus on the policy rate, currently at 25 percent.
As businesses push for a reduction to ease the high cost of credit, the Association of Ghana Industries believes a cut could spur growth and create jobs. However, while calls for a rate cut grow louder, economists are urging caution, warning that any adjustment should be modest to guard against inflationary risks.
At its last meeting in July, the committee delivered a bold 300 basis point cut, bringing the policy rate down to 25% after inflation eased to its lowest level in nearly three years. As the committee begins its September deliberations, businesses are watching closely.
The Greater Accra Regional Chairman of the Association of Ghana Industries (AGI), Tsonam Akpelo, expressed hope for another cut.
He said, “If the interest rate is high, it is almost difficult to buy the money and expand our business. So our hope is that government will be sensitive to all of these concerns and continue to reduce the policy rate.”
Akpelo believes that lower interest rates are crucial to stimulating industrial growth and employment. “Cheaper credits will allow industries to expand, create more jobs and drive Ghana’s recovery momentum,” he said.
Referring to the government’s 24-hour economic policy, he added, “The government itself is committed to implementing a 24-hour economic policy, which essentially is encouraging industry to expand and employ the many young people who are unemployed. For us to do that, we need cheaper rates. We want to go to the bank and be able to borrow money at a rate that is competitive.”
Meanwhile, economist Dr. Edu Owusu-Sarkodie echoed AGI’s call for a reduction in the policy rate but cautioned against a drastic cut. He pointed to current economic risks, saying, “The cedi is depreciating, which is likely going to feed into inflation and also we are now talking about some utility tariff adjustments.”
Dr. Owusu-Sarkodie added that while a cut is likely, it should be measured. “I’m sure the policy rate will be reduced, but not by a bigger margin. I’ve heard some people have called for 500 basis points, but I don’t think it will be that much. Because they will also have to be careful not to cut it so drastically.”
He concluded that “maybe somewhere around 150 to 200 basis points reduction should be okay. In other words, reducing it from 25 to 23 percent or 23.5 percent would be prudent.”
According to him, a moderate cut would still ease borrowing costs for businesses while giving the central bank room to manage inflationary risks.
With the policy rate holding at 25 percent after July’s bold cut, the Bank of Ghana faces a delicate balancing act. As businesses call for further reductions to spur growth and job creation, economists urge caution to avoid fueling inflation. The decision from this meeting will be key in shaping Ghana’s economic recovery path.
