By Ghana News
Copyright ghanamma
Economist and lecturer at the University of Ghana Business School, Professor Patrick Asuming, has expressed concern over the Bank of Ghana’s recent decision to slash its benchmark policy rate by 350 basis points to 21.5%.
He described the move as “quite aggressive,” citing Ghana’s fragile inflation outlook.
The economist further said that rising utility tariffs could soon exert upward pressure on prices, potentially reversing recent progress in curbing inflation.
Speaking on Citi Eyewitness News, Professor Asuming stated, “Personally, I think that it is quite aggressive. Even if there was going to be a cut — considering that at the previous meeting there was a substantial cut — I would have thought that if there was going to be a cut, it would be rather moderate.”
Local currency holds at GH¢12.25 to the dollar
The Bank of Ghana (BoG) announced the rate reduction on Wednesday, September 17, 2025, during its 126th Monetary Policy Committee (MPC) meeting in Accra.
BoG Governor, Dr Johnson Asiama, while addressing journalists, explained that the decision aims to stimulate credit growth and support the country’s economic recovery.
This latest cut follows a 300-basis-point reduction in July, which brought the rate down from 28% to 25%.
Earlier in March, the rate had been raised marginally from 27% to 28%, a level maintained during the May meeting.
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