Banks, BoG, and Industry Leaders Push for Stronger Link Between Monetary and Fiscal Policy to Drive Inclusive Growth
Ghana’s top banking professionals, central bank leadership, and industry players have renewed calls for deeper alignment between monetary policy and tangible economic outcomes, emphasizing the urgent need to link interest rate decisions to business growth and real sector financing.
This came to the fore during a high-level seminar hosted by the Chartered Institute of Bankers, Ghana (CIB Ghana), under the theme “Monetary Policy in Action: How MPC Decisions Shape Ghana’s Economy and Financial Sector.” The forum served as a platform for dissecting the recent policy rate cut by the Bank of Ghana’s Monetary Policy Committee (MPC) and exploring its practical implications for credit access, inflation, and economic recovery.
CIB Ghana President, Mr. Benjamin Amenumey, opened the session by reiterating the Institute’s role in fostering responsible professional discourse on national economic direction. “Fostering dialogue on monetary policy is not just a professional obligation it is a national duty,” he said.
A major highlight of the session was the release of new research findings by CIB Ghana. The report, based on responses from senior banking executives, revealed that over 85% of stakeholders had anticipated the latest policy rate cut, reflecting growing alignment between central bank actions and market expectations. However, many also expressed concerns about ongoing liquidity constraints, credit risk, and volatile funding costs that could undermine policy impact.
“Stakeholders are asking for stronger coherence between monetary actions and the country’s growth agenda,” said Robert Dzato, CEO of CIB Ghana. “The policy rate cannot be a signal in a vacuum. It must translate into real lending, jobs, and inclusive development.”
Bank of Ghana Governor, Dr. Johnson Pandit Asiama, who delivered the keynote address, described the country’s disinflation process as “real and sustained,” citing coordinated efforts between the central bank and the Ministry of Finance. He noted that inflation had dropped from 25.8% in March to 13.7% in June 2025, and the Ghana Reference Rate (GRR) had also seen a significant decline.
He, however, cautioned the banking sector against overreliance on government securities and urged institutions to realign their business models toward core intermediation.
“The era of high interest rates and passive investment is ending. Banks must now reimagine their models to support SMEs, agriculture, and green financing,” Dr. Asiama said.
Industry leaders echoed the call for more proactive lending. Association of Ghana Industries (AGI) President, Dr. Humphrey Ayim-Dake, stressed that the rate cut must unlock real sector credit. “We welcome the emerging low interest rate environment but now we need to see more banking, meaning more credit flowing into real businesses,” he noted.
GUTA President Joseph Obeng observed that the cedi’s recent appreciation had already begun reducing import prices, creating room for traders and consumers to breathe. “If the cedi holds steady, we will see more price corrections across board,” he said.
Absa Bank’s Ellen Ohene-Afoakwa emphasized the need for businesses to be ‘credit-ready’. “Banks are willing to lend. But borrowers must show sound governance, good financial records, and transparency,” she advised.
The roundtable not only highlighted the improving macroeconomic environment but also raised key questions about how monetary gains can translate into development outcomes. It reaffirmed the need for policymakers and financial institutions to move in lockstep, ensuring rate cuts are not merely economic signals but tools that open doors to growth, investment, and economic transformation.
As Ghana prepares for the next MPC cycle, the message from this forum was clear: the success of monetary policy must be measured not just in macro numbers, but in the credit flowing to small businesses, the jobs created, and the lives changed.
