Credit: Kekeli K. Blamey
The Bank of Ghana’s bold decision to slash its benchmark policy rate by 300 basis points — from 28% to 25% — is expected to trigger further reductions in the prices of goods and services across the country.
The steep cut, the sharpest in recent years, is being hailed as a major step toward reinforcing Ghana’s economic recovery and easing the cost of doing business.
One group expressing strong optimism is the Association of Ghana Industries (AGI). Speaking on the development, Greater Accra Regional Chairman of AGI, Tsonam Akpeloo, said the decision will provide critical relief to businesses already adjusting their pricing.
“This is welcoming news for us. We are already taking steps to reduce prices. If you visit the market, you will notice that prices of most goods and services have already dropped,” he noted. “We are monitoring the trend, and if conditions remain favourable, we will continue to lower prices of locally manufactured products.”
Mr. Akpeloo also called on the government to protect the gains of the economic rebound by cracking down on smuggling and supporting local industry.
“We expect firm action against smuggling, which undermines the competitiveness of local manufacturers,” he said.
The Bank of Ghana’s rate reduction is likely to ease borrowing costs and improve access to credit for businesses, particularly manufacturers and SMEs. The move comes at a time when key economic indicators are showing strong signs of recovery — with producer price inflation at 5.9% and consumer inflation dropping to 13.7% as of June 2025.
These economic trends follow commitments made by various business groups in May to reduce prices within a 60-day period after consultative meetings with the Minister of Trade, Agribusiness and Industry.
The rate cut is now seen as an added push for the private sector to fulfill that pledge and pass on the benefits to consumers.
