As the finance minister prepares to present the Mid-Year Budget Review—a standard exercise of every government—the Member of Parliament for Ekumfi in the Central Region, Hon. Dr. Othniel Ekow Quaninoe, has expressed optimism that the policy rate could see a reduction from its current level of 28%.
According to Dr. Quaninoe, a lower policy rate would be a significant boost for the business community, helping to stimulate economic activity across the country.
While he did not specify the exact figure he expects, the MP noted that the anticipated drop could range between 100 to 200 basis points.
He believes any downward adjustment would reflect a more business-friendly stance, in line with current economic trends.
“The expectation is that, with the disinflation trend we are witnessing, the policy rate could drop from the current 28%, give or take, by 100 to 200 basis points,” Dr. Quaninoe stated.
He attributed the positive economic outlook to prudent fiscal management and the President’s strategic appointments.
He also highlighted ongoing improvements in inflation and exchange rates, suggesting that the overall cost of living is gradually easing.
“Even GUTA, which is usually cautious in responding to currency movements, is now reducing their prices,” he said, using it as a benchmark for improved economic conditions.
Dr. Quaninoe further pointed out that Ghana’s gross international reserves have increased from $8.9 billion to $11.1 billion, providing about 4.1 months of import cover—another indicator, he said, of growing economic stability.
He concluded by saying that these developments justify a policy rate adjustment, which would further enhance the country’s economic momentum.
Story By: Prosper Kwaku Selassy Agbitor
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