The Bank of Ghana (BoG) is set to announce a new policy rate later today following an emergency Monetary Policy Committee (MPC) meeting held on July 17, rescheduled ahead of the 2025 mid-year budget presentation.
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The central bank’s decision could mark a significant shift in Ghana’s monetary stance, with inflation falling to 13.7%, its lowest level in over a year, down from 23.5% in January.
The MPC meeting, originally slated for July 28, was brought forward to avoid clashing with the Finance Ministry’s mid-year budget review scheduled for July 24.
The market now awaits a policy direction that could influence borrowing costs, credit flow, and investor confidence for the rest of the year.
Currently, Ghana’s benchmark policy rate stands at 28%. However, the recent decline in inflation has fueled expectations of a potential rate cut, particularly from the private sector and business community.
IMF, Business Groups Diverge on Policy Direction
While some MPC members are reportedly in favor of easing, others remain cautious. The International Monetary Fund (IMF) has advised the BoG to maintain monetary discipline, pointing to global volatility and the need to consolidate macroeconomic stability.
In contrast, the Ghana Union of Traders Associations (GUTA) has renewed calls for a major rate cut to support businesses facing high borrowing costs.
“With inflation coming down, the time is right for a substantial rate cut to boost credit access and fuel economic recovery,” said Joseph Paddy, GUTA’s Director of Communications.
GUTA also believes a lower rate would improve the competitiveness of Ghanaian businesses across West Africa.
Traders Demand Port Duty Relief
Meanwhile, pressure is mounting on the Finance Ministry as well. The Abossey Okai Spare Parts Dealers Association is calling for port duties to reflect the prevailing exchange rate, arguing that inflated costs at the ports are hurting businesses and consumers.
“We’re not against duties, but the exchange rate used is way above market levels. It’s pricing us out,” said Takyi Addo, Head of Communications for the association.
Market Awaits BoG Decision
With multiple stakeholders watching closely, the BoG’s announcement is expected to set the tone for Ghana’s economic trajectory in the second half of 2025.
Analysts say today’s policy decision could be one of the most impactful in recent months.
