GNCCI Urges BoG to Cut Policy Rate by 3% to Boost Private Sector Growth-Ghana

The Ghana National Chamber of Commerce and Industry (GNCCI) has called on the Bank of Ghana (BoG) to reduce the Monetary Policy Rate by at least 300 basis points, from its current 28%. The Chamber argues that the current rate, unchanged since March 2025, is too high and continues to restrict access to affordable credit for businesses, thereby impeding growth in the private sector.

According to GNCCI, domestic firms have been burdened by high lending rates—exceeding 25%—since September 2022. These conditions have discouraged investment and slowed down productivity and expansion. The Chamber believes that a policy rate cut is necessary to create a more enabling environment for business recovery and expansion, especially for local enterprises.

The call is supported by signs of macroeconomic improvement. GNCCI points to declining inflation, which fell from 23.8% in December 2024 to 13.7% in June 2025, as well as a 42% appreciation of the Cedi in the first half of 2025. The Chamber also notes stronger international reserves, fiscal consolidation, and a growing surplus in international trade and current accounts.

On the global front, GNCCI highlights easing financial conditions and declining global inflation. The International Monetary Fund (IMF) has projected global growth at 3.3% and inflation to fall to 4.2% in 2025. These external trends, the Chamber says, reduce inflationary risks and provide room for monetary easing.

Despite potential risks, including post-election fiscal slippages and global uncertainty, GNCCI insists that a proactive policy shift is necessary. A rate cut, they argue, would lower borrowing costs, encourage production, and support Ghana’s long-term export-led growth. The Chamber reaffirmed its readiness to collaborate with stakeholders in promoting a stable and inclusive economic recovery.

Source: Citi newsroom