The Association of Ghana Industries (AGI) is projecting improved access to credit on the back of easing macroeconomic pressures, citing a decline in inflation to 5.4% and relative stability in the exchange rate.
The association says these gains must translate into stronger economic growth in 2026 and is urging the Bank of Ghana to further ease monetary policy, noting that additional cuts to the policy rate would lower borrowing costs, improve liquidity, and expand credit availability to the private sector, particularly for industry.
Chief Executive Officer of AGI, Seth Twum-Akwaboah, disclosed this in an interview with Citi Business News, stressing that a more accommodative credit environment will be critical in supporting investment, production, and job creation.
“In the past we have complained about the fact that when the policy rate drops, we don’t see corresponding drop in the interest rates. But the banks will always say that when there’s a policy rate drop, one-off drop is not the solution. We must be consistent. So if you see it every quarter and it is so for a number of quarters, then people begin to have confidence that indeed the drop is real and that on the basis of that they can also reduce the interest rate.
“But now that we have had consistency in the policy rate drop and the standard inflation is as low as you mentioned, then we would really expect that the interest rate will also fall. It is always driven also by the policy rate. We are expecting that with the stability we have achieved, subsequent policy rates should be coming down and when it is consistent like that, I think the banks will have no choice than to reduce the interest rate for us,” he said.
AGI’s call for further monetary easing comes as the current policy rate stands at 18 percent.
Source: citinewsroom.com
