The Association of Ghana Industries (AGI) is upbeat that the recent cuts in the Bank of Ghana’s policy rate will trigger a new phase of lending and growth for businesses.

The central bank slashed its key rate by 350 basis points to 21.5% on September 18, 2025. This was the second cut in two months.

The decision was anchored on falling inflation, strong growth, and improved external buffers, with inflation projected to hit the medium-term target by year-end.

Dr Humphrey Ayim-Darke, President of AGI, said the new environment will compel banks to step up lending to businesses.

“This gives further assurance to the bank, besides the DBG one that is coming up, it’s also going to aid stimulate the banks to do more lending, because all such funds that will be underwritten by such guarantee schemes will give them that freedom and the capacity to go out there and be more daring.”

He noted that the trend will complement the macroeconomic gains and the fiscal consolidation taking place.

“All the macro gains and the drive of the Bank of Ghana and the fiscal consolidation that is happening within that context, the banks will be positioned.”

According to him, banks cannot avoid responding to these new signals. “They have no other choice than to come to the market, because the lending, the T-bill rates also is another factor that is shaping their thoughts and their lending model.”

Dr Ayim-Darke declared that a new era is here. “Real banking is coming to the table, and we in the industry, space and business, believe that definitely it will trend downwards.”

He, however, warned that other institutions must play their part.

“So we need those other factors and that will speak to, ie, the regulatory authorities, because amidst all these gains that have been attained within this period.

"The flip side, or the derailing factors that may come to the table, are the role of the various regulatory authorities supporting industry.”