Businesses Eye Further Price Reductions as Bank of Ghana Slashes Interest Rate
Ghana’s business community is poised to further reduce prices of goods and services following the Bank of Ghana’s sharp 300 basis point cut in its benchmark interest rate —marking the steepest decline in recent years.
The central bank’s policy rate now stands at 25%, down from 28%, signaling renewed confidence in Ghana’s macroeconomic recovery and a bid to stimulate economic activity.
Reacting to the news, the Association of Ghana Industries (AGI) expressed optimism about the policy move. Speaking to Citi Business News, Tsonam Akpeloo, Greater Accra Regional Chairman of AGI, said the rate cut would help ease production costs and positively affect market prices.
“This is welcoming news for us. We are already taking steps to reduce prices,” Akpeloo stated.
“If you go to the market today you will observe that most prices of goods and services have been reduced… we will consider reducing the price of goods and services that we produce in the market.”
Akpeloo also called on the government to sustain the recovery effort and shield local manufacturers from the threat of unfair trade.
“We are expecting the government to take up measures to ensure people who smuggle products into the country are dealt with.”
The Central Bank’s aggressive rate cut is expected to make credit more affordable for businesses, particularly manufacturers, potentially leading to increased production, job creation, and price moderation.
This monetary easing comes amid positive inflation trends:
- Producer Price Inflation (PPI) dropped to 5.9% in June 2025.
- Consumer inflation eased further to 13.7% in the same month.
In May, business groups committed to reducing prices within a 60-day window—contingent on favourable inflation and lending rate conditions. With these metrics now in their favour, pressure is mounting for them to honour that pledge.
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