Banking Consultant and Dean of the Faculty of Accounting and Finance, Professor Isaac Boadi, has expressed disappointment with the Bank of Ghana’s decision to reduce the Monetary Policy Rate (MPR) from 28% to 25%.
Describing the move as inadequate, Prof. Boadi argued that the central bank should have taken a bolder step by cutting the rate by at least 600 basis points to bring it closer to 22%, given the country’s improving macroeconomic outlook.
According to him, the current MPR remains high and continues to restrict access to credit for the private sector, which is still struggling to recover from past economic disruptions.
While he acknowledged the reduction as a positive step, he maintained that it fell short of market expectations.
“This is still high. It should have gone down to 20 or 19.2,” he spoke to ABC News GH on Thursday, July 31, 2025.
Prof. Boadi emphasized that with inflation on a consistent downward trend and stability returning to the cedi, the economic environment warrants a more aggressive monetary easing to spur lending, reduce borrowing costs, and stimulate real sector growth.
He believes a deeper cut would have sent a stronger signal of the central bank’s commitment to supporting business recovery and economic expansion.
