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    Home » GNCCI Applauds BoG’s Bold Rate Cut …presses banks to follow suit
    Economy and Finance

    GNCCI Applauds BoG’s Bold Rate Cut …presses banks to follow suit

    Adnan AdamsBy Adnan AdamsFebruary 2, 2026No Comments4 Views
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    The Ghana National Chamber of Commerce and Industry (GNCCI) has thrown its support behind the Bank of Ghana’s (BoG) decision to slash the Monetary Policy Rate from 18% to 15.5%

    The Chamber described the move as a “timely policy intervention” that signals a new era of business recovery and private sector–led growth for 2026.

    In a statement released on Thursday, January 29, 2026, the Chamber noted that this latest 250-basis-point cut brings the cumulative reduction in the policy rate to 11.5 percentage points over the last 12 months (January 2025 to January 2026).

    GNCCI President Mr. Stephane Miezan commended the Ministry of Finance and the central bank for their coordinated effort in stabilizing the economy. The Chamber attributed the steady decline in rates to prudent fiscal management and a gradual easing of the monetary tightness that has long hampered Ghanaian businesses.

    “This sustained reduction… reflects improving macroeconomic conditions and a gradual easing of monetary tightness,” the statement noted. “We encourage continuation of these efforts to rebuild business confidence.”

    The “Hidden” Costs of Credit

    Despite the celebration of the BoG’s decision, the GNCCI raised a red flag regarding the slow “transmission” of these cuts to the average borrower. The Chamber expressed deep concern that commercial banks have yet to significantly lower their lending rates, which remain prohibitively high for many.

    The GNCCI identified several “non-interest cost components” that continue to inflate the cost of credit by an additional 4% to 5%:

    ● Bank-specific risk premiums

    ● High operating costs and profit margins

    ● Processing and arrangement fees

    ● Commitment charges

    Banks Begin to Chase Borrowers

    However, the central bank sees a different side of the story. Speaking at the 128th Monetary Policy Committee (MPC) press briefing on Wednesday, January 28, the Governor of the Bank of Ghana, Dr. Johnson Asiama, revealed that the tide is beginning to turn.

    “Banks are beginning to call clients if they need loans,” the Governor disclosed, citing reports of banks offering rates as low as 15% to court reliable borrowers. Dr. Asiama described this as a positive signal of renewed liquidity and confidence within the banking system, suggesting that balance sheets are finally strengthening enough to support private-sector expansion.

    A Call to Action for Commercial Banks

    The Chamber warned that if commercial banks across the board do not align their rates with the central bank’s direction, the benefits of the rate cut will remain out of reach for many Small and Medium Enterprises (SMEs).

    To bridge this gap, the GNCCI is urging financial institutions to:

    1. Reduce non-interest charges: Lower the fees that artificially hike the cost of borrowing.

    2. Leverage risk-sharing: Utilize credit enhancement frameworks to mitigate lending risks.

    3. Support productive sectors: Focus on industries that drive job creation and long-term economic resilience.

     

     

    Bank of Ghana (BoG) Ghana National Chamber of Commerce and Industry (GNCCI) Monetary Policy Rate (MPR) Stephane Miezan
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    Adnan Adams
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