The Ghana Union of Traders Association (GUTA) has welcomed the Bank of Ghana’s decision to cut the monetary policy rate by 300 basis points, describing it as a timely intervention that will ease pressure on businesses and stimulate economic activity.

The central bank on Wednesday July 30, 2025, announced a reduction in the benchmark interest rate from 28 percent to 25 percent, citing improved macroeconomic conditions and a firm downward trend in inflation.

Reacting to the development in an interview with GhanaWeb Business, GUTA President Dr Joseph Obeng said the policy adjustment signals renewed hope for the private sector, particularly traders and small businesses grappling with high cost of credit.

"This is a very commendable move by the Bank of Ghana. For a long time, we have called for measures that will reduce the high cost of doing business in the country.

“We believe this cut will lead to a corresponding reduction in lending rates by the banks, which will ultimately benefit the business community,” he said.

Dr Obeng urged commercial banks to respond by easing credit terms for businesses, especially small and medium-scale enterprises that remain vulnerable in the current economic climate.

“We expect that banks will not delay in adjusting their rates to reflect the new policy direction. This is an opportunity to revive business confidence and boost investment,” the GUTA president said.

Dr Obeng also expressed optimism that continued macroeconomic stability and effective policy coordination would further improve access to affordable financing for MSMEs.

MA