AGI anticipates policy rate cut amid improving macroeconomic indicators

The Association of Ghana Industries (AGI) expects a policy rate reduction. The Bank of Ghana will announce its latest monetary policy today.

In the last Monetary Policy Committee (MPC) meeting, the Central Bank raised the rate by 100 basis points to 28 percent. This increase was due to ongoing inflationary pressures.

AGI Chief Executive Officer Seth Twum Akwaboah believes conditions are now favorable for a rate cut. He highlighted improving macroeconomic indicators as justification for this change.

Akwaboah noted the recent strengthening of the Ghana cedi against the US dollar. He stated that a lower policy rate could reduce borrowing costs for businesses.

He explained that improvements in the macroeconomic environment should influence the MPC's decision. The MPC largely determines interest rates, which banks rely on.

With better stability in the cedi, Akwaboah expects a positive shift in the policy rate. This change could help lower production costs and prices for businesses. He anticipates a downward review if conditions remain stable.