John Awuah is the CEO of the Ghana Association of Banks
The CEO of the Ghana Association of Banks, John Awuah, says the banking industry is anticipating a significant cut, about two percentage points, in the Bank of Ghana’s policy rate, as the Monetary Policy Committee (MPC) concludes its three-day meeting today, Wednesday, July 30, 2025.
Speaking to Citi Business News, Awuah stated that current economic conditions, particularly the decline in inflation to 13.7%, support a major reduction in the 28% policy rate.
“So we are all watching closely. We are expecting something significant, around 200 basis points. If the policy rate comes down, and comes down aggressively, it will directly affect the Ghana Reference Rate, which will eventually feed into a reduction in lending rates,” he said.
Banks view a possible rate cut as the logical next step following months of falling inflation and a stable currency.
The MPC’s decision is expected to influence borrowing costs, investor confidence, inflation expectations, and access to credit in the second half of 2025.
Awuah also noted that lending rates are shaped by the policy rate, the interbank rate, and Treasury bill rates. A cut in the policy rate, he explained, could help reduce overall interest rates in the market.
DR/MA
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