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Commercial banks are anticipating a significant policy shift as the Bank of Ghana’s Monetary Policy Committee (MPC) wraps up its three-day meeting later today, Wednesday, July 30, 2025.
The Ghana Association of Banks (GAB) insists there is strong market expectation of a 200 basis points cut in the current 28% policy rate – a move that could signal renewed momentum in Ghana’s post-crisis recovery and support lower lending rates.
Speaking ahead of the MPC announcement, John Awuah, CEO of the Ghana Association of Banks, cited prevailing macroeconomic indicators particularly the steady drop in inflation to 13.7% as a strong basis for policy easing.
So we are all watching the space. We are looking forward to something significant, I mean we are looking for something around 200 basis points. If policy rate comes down and it comes down aggressively, it will definitely directly impact the Ghana reference rate, which will ultimately then feed into the lending rate reduction”, he told Citi Business News.
The banking sector views the potential cut as a natural next step following months of disinflation and relative currency stability.
Market watchers will be closely monitoring the MPC’s decision, which could set the tone for the second half of 2025 and influence investor sentiment, inflation expectations and private sector credit uptake.
Where we are now, we hold the view that the central bank will now perhaps take a second look at the policy rate, because as you know the lending rate is an interplay of three rates. You have the policy rate, you have the interbank rate and the T-bill rate. The three together, you know, adjusted for a few other little variables will give you your reference rate”, John Awuah added.
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