The Association of Ghana Industries (AGI) expects the Bank of Ghana to cut the policy rate as the Monetary Policy Committee (MPC) announces its decision today.
At its last meeting, the Central Bank raised the rate by 100 basis points to 28 percent, citing inflation concerns. However, AGI CEO Seth Twum Akwaboah says recent improvements in key economic indicators support a rate cut.
Speaking to the media, Mr. Akwaboah highlighted the cedi’s recent stability against the US dollar and noted that borrowing costs remain high for businesses.
“A rate cut will reflect the macroeconomic improvements we’re seeing,” he stated. “It will also reduce production costs, lower interest rates, and help businesses become more competitive.”
He added that banks base their lending rates on the policy rate, so a downward review could offer direct relief to companies struggling with high financial costs.
“All things being equal, we expect a downward review,” Mr. Akwaboah concluded.
