Prices of goods and services in Ghana may see further reductions after the Bank of Ghana (BoG) slashed its benchmark interest rate by 300 basis points, one of the steepest cuts in recent years.
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The policy rate now stands at 25%, down from 28%, signaling renewed confidence in Ghana’s macroeconomic recovery.
The Association of Ghana Industries (AGI) has welcomed the move, calling it a timely boost for the business community.
“This is welcoming news for us,” said Tsonam Akpeloo, Greater Accra Regional Chairman of AGI, in an interview with Citi Business News.
“If you go to the market today, you will observe that most prices have been reduced. We’re still studying the trends, but we’ll continue to lower prices if conditions remain favorable.”
Akpeloo added that government must intensify efforts to protect local manufacturers by cracking down on smuggled goods that flood the market.
The Central Bank’s decision is expected to make credit more affordable for businesses, further easing pressure on production costs. The move also aligns with positive inflation trends:
- Producer Price Inflation (PPI) dropped to 5.9% in June 2025.
- Consumer Inflation eased to 13.7% in the same month.
The rate cut follows a May 2025 commitment from business groups to reduce prices within 60 days, following a high-level meeting with the Minister for Trade, Agribusiness and Industry.
Economists view this aggressive policy move as a sign that Ghana’s fiscal and monetary reforms are gaining traction, though some caution against premature optimism.
