Categories: Business

AGI expects policy rate cut amid signs of economic recovery

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.

Sylvester Oppong Nyarko

Recent Posts

Bawumia’s public image feels more like a comedy show than… – Kevin Taylor

US-based Ghanaian journalist, Kevin Taylor has descended heavily once again on former Vice President Dr.…

4 hours ago

Return our 9,321-square-mile Chipa Forest Land – Shai Chiefs appeal to Mahama

Traditional leaders and residents of the Shai Traditional Area have appealed to President John Dramani…

5 days ago

Former CJ suffers another heavy blow; ECOWAS Court dismisses her claims

Deputy Attorney-General and Minister for Justice, Justice Srem-Sai, has announced that the ECOWAS Community Court…

1 week ago

Atidefe Foundation to hold its 5th Youth Forum, Free Coconut Seedlings Distribution

The Atidefe Foundation has announced that its 5th Free Coconut Seedlings Distribution and Youth Empowerment…

2 weeks ago

Breaking News: Iran confirms electronic signing of peace deal with US

Iran's Foreign Ministry spokesperson, Esmaeil Baghaei, has confirmed that the peace memorandum of understanding (MoU)…

2 weeks ago

MTN slashes fibre broadband prices following Gov’t engagement – Sam George

The Minister for Communication, Digital Technology and Innovations, Sam Nartey George, has announced significant reductions…

2 weeks ago

This website uses cookies.