The Bank of Ghana has made a historic move by cutting its benchmark policy rate by 300 basis points to 25%, delivering a major boost to businesses struggling with high borrowing costs.
The announcement, made on July 30, 2025, marks the most significant single rate reduction in recent years.
The decision follows the conclusion of the Monetary Policy Committee’s 125th meeting and reflects growing confidence in the country’s economic recovery.
It comes just five days after the Ghana National Chamber of Commerce and Industry (GNCCI) formally appealed for rate relief, citing a marked decline in inflation and a stronger local currency.
“This bold and timely action is a huge relief for the private sector,” said GNCCI CEO Mark Badu Aboagye.
“It will ease pressure on the private sector by reducing the cost of credit and encouraging new investments, especially in manufacturing, agribusiness, and pharmaceuticals.”
Since March 2025, the policy rate had been held at 28%. GNCCI had repeatedly expressed concern that lending rates above 25% since 2022 were stifling economic growth.
The Chamber’s latest appeal was supported by positive economic indicators, including a drop in inflation from 23.8% in December 2024 to 13.7% in June 2025, and a 42% appreciation of the cedi.
Aboagye emphasized that access to affordable credit would help position Ghana as a competitive player under the African Continental Free Trade Area (AfCFTA), by enabling businesses to scale up and expand exports.
GNCCI urged commercial banks to respond swiftly by adjusting their lending rates in line with the central bank’s policy. The Chamber also called on the government and development partners to offer targeted support to small and medium-sized enterprises, warning that the full benefit of the rate cut depends on how effectively it is transmitted through the financial system.
About The Author
