The business community may be compelled to further reduce the prices of goods and services in the coming days, following the Bank of Ghana’s bold decision to cut its benchmark interest rate by 300 basis points; the sharpest reduction in recent years.
The policy rate now stands at 25 percent, down from 28 percent – a move widely seen as a strong signal of confidence in Ghana’s macroeconomic rebound.
One of the groups optimistic about the impact of this decision is the Association of Ghana Industries (AGI).
Speaking to Citi Business News, Greater Accra Regional Chairman of AGI, Tsonam Akpeloo said:
“This is welcoming news for us. We are already taking steps to reduce prices. If you go to the market today you will observe that most prices of goods and services have been reduced. We are still studying the trends and if everything goes well we will continue to reduce. We will consider reducing the price of goods and services that we produce in the market”.
He further urged government to ensure the current macroeconomic recovery is sustained and safeguard the interests of local manufacturers.
“We are also expecting the government to take up measures to ensure people who smuggle products into the country are dealt with,” he added.
The Central Bank’s rate cut is expected to ease borrowing costs for businesses and manufacturers, making access to credit more affordable.
This comes at a time when key inflation indicators continue to trend downward — with Producer Price Inflation (PPI) for June 2025 recorded at 5.9%, and annual consumer inflation easing to 13.7% in the same month.
These positive signals should compel business groups to follow through on their earlier commitment to reduce prices within a 60-day window, after discussions with the Minister for Trade, Agribusiness and Industry in May.
