Princess Avenyoh
Businesses may soon lower prices again after the Bank of Ghana slashed its key interest rate by 300 basis points.
The policy rate has dropped from 28 percent to 25 percent, signaling strong confidence in economic recovery.
Industry groups, especially the Association of Ghana Industries (AGI), have welcomed the move as good for business.
AGI Greater Accra Chairman, Tsonam Akpeloo described the rate cut as “welcoming news.”
He said some businesses have already reduced prices and further cuts may follow depending on market conditions.
“We are reviewing price trends and will continue to lower prices if the economy remains stable,” he stated.
Akpeloo urged the government to protect local producers and ensure fair competition by addressing product smuggling.
He also emphasised the importance of sustaining the current macroeconomic recovery to benefit local manufacturing businesses.
The rate cut is expected to reduce borrowing costs, helping businesses access cheaper credit for growth.
It comes as inflation indicators continue to improve, bringing relief to both businesses and consumers across the country.
Producer Price Inflation fell to 5.9% in June 2025, while consumer inflation dropped to 13.7% the same month.
The interest rate reduction may push businesses to honor earlier promises to cut prices within 60 days.
These commitments were made during meetings with the Minister for Trade, Agribusiness and Industry in May 2025.
With stronger economic signals, businesses now face pressure to reflect the gains in their pricing strategies.