Amid signs of a steadily recovering economy, the Ghana National Chamber of Commerce and Industry (GNCCI) has stepped up pressure on the Bank of Ghana (BoG) to ease its tight monetary stance, warning that the current policy rate is choking private sector growth.
In a statement issued Monday, July 28, the Chamber called for a minimum 300 basis point (3%) cut to the Monetary Policy Rate (MPR), currently held at 28% since March 2025. According to the GNCCI, this unchanged rate—despite positive economic indicators—is creating an artificial credit squeeze that threatens Ghana’s business recovery.
“Domestic firms have faced lending rates consistently exceeding 25 percent since September 2022,” the Chamber said. “Such high costs of borrowing are unsustainable and are stalling investment and expansion in key industries.”
Macroeconomic Signals Call for Policy Adjustment
The GNCCI argues that Ghana’s macroeconomic environment now justifies a shift in policy direction. Key indicators cited in support of a rate cut include:
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A sharp drop in headline inflation from 23.8% in December 2024 to 13.7% in June 2025
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42% appreciation of the Cedi in the first half of 2025
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A strengthening current account balance and gross international reserves
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Progress in fiscal consolidation and government expenditure control
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Positive global trends, including IMF’s 3.3% growth forecast and declining global inflation (projected at 4.2%)
Chamber Warns of Lagging Impact on Real Sector
The GNCCI also urged the Central Bank to consider the time lag involved in the transmission of monetary policy. It believes a preemptive cut now would accelerate gains in productivity, job creation, and competitiveness in Ghana’s real economy.
“A forward-looking policy adjustment is essential to sustain the current growth momentum and support an export-led economic recovery,” the statement read.
The Chamber further argued that global financial conditions are easing, with reduced inflationary pressure from external markets—a signal that tightening may no longer be necessary to defend the Cedi or tame prices.
Policy Versus Prudence: The Risk of Doing Too Little
While the GNCCI acknowledged lingering risks such as global policy shifts and potential post-election fiscal laxity, it insists that these should not overshadow the urgent need to reduce borrowing costs for domestic enterprises.
“The private sector is the engine of economic growth. If we continue to starve it of affordable capital, we risk reversing the recovery gains made in the past year,” it warned.
A Call for Pro-Business Monetary Leadership
The GNCCI concluded by reaffirming its commitment to partnering with both government and private stakeholders to promote a business-friendly environment that underpins inclusive and sustainable economic development.
As the Bank of Ghana prepares for its next Monetary Policy Committee (MPC) meeting, pressure is clearly mounting for a recalibration—one that could define the trajectory of Ghana’s recovery through the rest of 2025.
