The Ghana National Chamber of Commerce and Industry (GNCCI) has called on the Bank of Ghana (BoG) to reduce the Monetary Policy Rate (MPR) by at least 300 basis points—or 3%—to provide much-needed relief to businesses and fuel private sector growth.

In a statement, the Chamber argued that the prevailing 28% policy rate, which has remained unchanged since March 2025, is excessively restrictive and continues to hinder access to affordable credit.

According to GNCCI, domestic firms have been burdened with lending rates exceeding 25% since September 2022. This prolonged period of high-interest costs has curtailed investment, dampened productivity, and limited the expansion of businesses across key sectors of the economy.

“Domestic firms have endured prohibitively high lending rates consistently exceeding 25 percent since September 2022,” the GNCCI lamented. “This has constrained investment, productivity, and overall business expansion.”

Citing an Improving Macroeconomic Environment

The Chamber’s appeal is anchored on what it describes as a significantly improved macroeconomic environment. It pointed to several indicators, including:

A steady decline in headline inflation from 23.8% in December 2024 to 13.7% in June 2025.
A robust 42% appreciation of the Ghanaian Cedi in the first half of 2025.
A notable recovery in international trade and current account surpluses.
Strengthened gross international reserves, providing a buffer against external shocks.
Effective fiscal consolidation efforts by the government, which have curbed excess spending and supported monetary stability.

GNCCI further noted that Ghana’s improved domestic indicators align with more favorable global economic trends. These include the International Monetary Fund’s (IMF) projection of 3.3% global growth in 2025 and a forecasted decline in global inflation to 4.2%. Additionally, easing global financial conditions are expected to reduce external inflationary pressures on emerging markets like Ghana.

Policy Rate Cut as a Strategic Tool

With such tailwinds, the Chamber believes the time is ripe for the central bank to recalibrate its monetary policy stance. “Reducing the policy rate will lower the cost of domestic commercial capital, stimulate production in the real sector, and reinforce Ghana’s export-led growth agenda,” the statement said.

GNCCI also acknowledged potential risks, including uncertainty in global monetary policies and fiscal slippages stemming from Ghana’s 2024 election cycle. However, it maintains that a forward-looking and measured rate cut will send a strong signal to investors and the business community that Ghana is committed to sustaining its growth momentum.

Importantly, GNCCI emphasized the need for monetary policy to take into account the time lag in transmission. This means that even if the policy rate is cut today, its effects may only begin to manifest over the next several months. Thus, delaying such a decision could undermine the ongoing recovery and the private sector’s ability to plan long-term.

The Chamber reaffirmed its dedication to working with both public institutions and private stakeholders to create a resilient and inclusive business environment. “Our goal is to foster sustainable economic growth, enhance industrial competitiveness, and ensure that Ghana’s business community thrives under stable macroeconomic conditions,” the GNCCI concluded.

As the BoG prepares to end Monetary Policy Committee meeting, all eyes will be on whether the central bank responds to the growing chorus of calls—led now by the country’s most prominent business chamber—to ease monetary conditions and unleash the full potential of the Ghanaian economy.