Financial analysts at Deloitte anticipate a potential policy rate cut by the Bank of Ghana (BoG) during its next Monetary Policy Committee meeting on March 28. The expected reduction is driven by easing inflationary pressures and a need to stimulate economic growth amid tight financial conditions.
Deloitte West Africa predicts a possible Bank of Ghana rate cut from 27% on March 28, 2025, citing falling inflation, stable cedi, and lower global fuel prices, despite persistent market price pressures.
The Bank of Ghana is likely to reduce its Monetary Policy Rate from the present 27% when it announces developments in the Ghanaian economy on March 28, 2025, Deloitte West Africa has predicted.
This is expected to ease the cost of credit for businesses.
In its analysis of Ghana and Nigeria‘s inflation outlook, the professional services firm said the fall in global prices will impact positively on domestic fuel prices.
It however wants fuel taxes such as the Special Petroleum Tax and the Price Stabilization and Recovery Ley to be reviewed to keep fuel prices affordable.
It is hopeful the current stable cedi will address imported inflation. Ghana’s inflation fell for the second consecutive month to 23.1%b in February 2025 as food and non-food sub-indices decline.
This, Deloitte said is an indication of the start of a sustained downward trend. However, it will still be higher than the Bank of Ghana’s target of 8+/-2%.
It continued that positive real return in investment will increase as inflation falls.
Alcoholic Beverages (25.60%), Energy Prices and Transport Fares (17.90%) recorded the highest inflation rate during the month of February 2025.
Meanwhile, market prices remain elevated despite disinflation.
