The Head of Finance at Merban Capital, Nelson Cudjoe Kuagbedzi, says the reduction of Ghana’s Monetary Policy Rate (MPR) to 18% sends a strong signal that will boost investor confidence, accelerate economic growth, and offer much-needed relief to the private sector.
According to Cudjoe Kuagbedzi, the cut also reflects the Bank of Ghana’s commitment to creating a more supportive environment for private sector expansion.
He tells Citi Business News that both local and foreign investors are likely to interpret the rate reduction as evidence of improving economic stability and policy clarity.
“The government intends to create 800,000 jobs next year, and the private sector will play a key role in that effort. But before the private sector can expand and support job creation, businesses need access to affordable capital,” he said.
“One of the critical factors investors consider before committing funds to any economy is the cost of capital. So once the cost of capital comes down, we expect investor confidence to improve and economic activity to deepen.”
The Bank of Ghana reduced its policy rate by 350 basis points to 18 percent, one of the steepest easing decisions in recent years.
The Central Bank attributed the cut to sustained progress in reducing inflation, a stabilising cedi, and improving macroeconomic indicators, all of which create space to support economic growth.
The reduction is expected to translate into lower lending rates over the medium term, providing relief to businesses and households that have endured high borrowing costs.
Announcing the decision at a press briefing on Wednesday, November 26, 2025, Governor Dr. Johnson Asiama said the latest assessment by the Monetary Policy Committee (MPC) indicates that the economy has entered a period of broadly improved stability, underpinned by a significant rebound in the external sector.
“The Bank projects a continued stable inflation profile around the target well into the first half of 2026. Current risks that could push inflation away from target have moderated significantly,” he noted.
He added that Ghana’s external position has experienced a “remarkable turnaround,” providing stronger backing for the Bank’s policy stance and flexibility.
