The Chartered Institute of Bankers, Ghana (CIB Ghana) has taken a leading role in shaping conversations on the intersection of monetary policy and banking sector reform.

At a high-level policy seminar themed “Monetary Policy in Action: How MPC Decisions Shape Ghana’s Economy and Financial Sector,” experts, policymakers, and industry stakeholders explored how interest rate decisions influence lending, inflation, and overall financial sector development.

Welcoming participants, Benjamin Amenumey, President of CIB Ghana, reaffirmed the Institute’s dedication to promoting informed, professional engagement on key economic policies.

“Our mandate requires that we promote ethical and professional conduct while advancing the development of the banking profession. Fostering dialogue on monetary policy is a national duty.”
Benjamin Amenumey

The seminar was designed to bridge the gap between policy decisions made by the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) and their impact on real economic activity, ensuring the banking profession remains proactive in driving national development.

Robert Dzato, Chief Executive Officer of CIB Ghana, shared highlights from an Institute-led survey involving senior banking executives and key financial sector actors. The findings indicated that over 85 percent of respondents anticipated the BoG’s recent policy rate cut, signaling broad stakeholder alignment with the central bank’s approach.

“Stakeholders are looking for greater alignment between monetary policy actions and economic growth. We also heard concerns about liquidity constraints, credit risk, and volatility in funding costs.”
Robert Dzato

BoG Governor Outlines Progress in Disinflation

Delivering the keynote address, Dr. Johnson Asiama, Governor of the BoG, described Ghana’s ongoing disinflation process as “real, sustained, and progressive,” backed by coordinated measures between the central bank and the Ministry of Finance.

Key economic indicators, he revealed, have shown significant improvement: Inflation dropped from 25.8% in March to 13.7% in June 2025; The Ghana Reference Rate (GRR) declined from 32.5% in January to 27.7% in July; The Cedi appreciated over 40% year-to-date, and easing imported inflation and improving purchasing power.

Dr. Asiama cautioned that banks must strengthen their credit infrastructure in anticipation of a shifting financial environment. “Banks have to start assessing themselves, especially their credit infrastructure. We will soon come out with a notice on credit risk for banks,” he said.

Call for a Shift to Core Credit Intermediation

The Governor urged commercial banks to reduce their dependence on passive investments in government securities and increase direct lending to the productive sectors.

“The era of high interest rates and passive investment is ending. Banks must now reimagine their business models, focusing on SMEs, agriculture, and green finance.”
Dr. Johnson Asiama

The seminar’s panel discussion brought diverse perspectives from leading voices in banking, industry, and trade.

Professor Festus Ebo Turkson, an external MPC member, explained that interest rate decisions are grounded in robust economic analysis. “It is data-driven. Every decision we make reflects a rigorous review of economic conditions and risks,” he said.

Dr. Humphrey Ayim Dake, President of the Association of Ghana Industries (AGI), welcomed the emerging low interest rate environment. “We expect to see more banking—that is, credit flowing into real businesses,” he remarked.

From a trade perspective, Joseph Obeng, President of the Ghana Union of Traders Association (GUTA), said the Cedi’s strength is already translating into lower import prices. “If the Cedi holds steady, prices will continue to come down across the board,” he observed.

Ellen Ohene-Afoakwa, Managing Principal for Corporate and Investment Banking at Absa Bank, highlighted that while banks are willing to extend credit, the readiness of businesses to absorb such financing is critical. “Sound governance, financial discipline, and transparency matter,” she advised.

The seminar concluded with a renewed commitment to inclusive and transparent policy discussions as a means of strengthening Ghana’s banking sector and economy. By fostering collaboration between policymakers, bankers, and the business community, CIB Ghana aims to ensure that monetary policy actions translate into tangible economic growth.