The business community may soon be under increased pressure to lower prices, following the Bank of Ghana’s (BoG) significant 300-basis-point reduction in its policy rate, the sharpest cut in recent years.
The central bank’s benchmark rate now stands at 25%, down from 28%. The move is widely interpreted as a strong vote of confidence in Ghana’s ongoing macroeconomic recovery.
Among the groups responding positively to the development is the Association of Ghana Industries (AGI). Speaking to Citi Business News, AGI’s Greater Accra Regional Chairman, Tsonam Akpeloo, described the rate cut as a welcome relief for industry players.
“This is good news for us,” Akpeloo said. “We’ve already started adjusting prices downward. If you visit the market today, you’ll notice a reduction in the cost of many goods and services. We’re closely monitoring the trend and, if it holds, we will continue to make further reductions particularly on goods and services produced locally.”
He also called on the government to maintain the current trajectory of economic stability and take decisive steps to protect local manufacturers from unfair competition.
“We expect the government to act against those smuggling goods into the country, as it undermines local industry,” he emphasized.
The BoG’s rate cut is expected to lower borrowing costs, improving access to credit for businesses and manufacturers at a time when key inflation indicators are easing. As of June 2025, the Producer Price Inflation (PPI) stood at 5.9%, while consumer inflation dropped to 13.7%.
These trends add momentum to calls for businesses to follow through on earlier commitments to reduce prices within a 60-day window, a pledge made after engagements with the Minister for Trade, Agribusiness, and Industry in May.
