CUTS International has warned that recent policy rate reductions in Ghana are failing to benefit ordinary consumers due to the country’s predominantly cash-based economic system that limits credit access for low and middle-income earners.
Appiah Kusi Adomako, West Africa Regional Director of CUTS International, told 3Business on Sunday, February 2, 2026, that Ghana’s credit framework requires urgent review if monetary policy easing is to translate into meaningful economic benefits for ordinary citizens. The Bank of Ghana (BoG) cut its benchmark policy rate by 250 basis points to 15.5 percent on January 28, 2026, marking the lowest level in four years.
Adomako argued that the absence of robust credit infrastructure prevents most Ghanaians from accessing affordable loans despite falling interest rates. He emphasized that the country operates primarily as a cash and carry economy where most transactions occur without formal credit arrangements.
The consumer rights advocate noted that commercial banks remain focused on serving corporate clients and high net worth individuals, leaving ordinary Ghanaians unable to benefit from reduced borrowing costs. He called for comprehensive reforms to expand credit access through alternative financing mechanisms and stronger consumer protection frameworks.
His comments echo growing concerns from business groups about the transmission of monetary policy benefits. The Association of Ghana Industries (AGI) recently complained that policy rate cuts historically fail to produce corresponding reductions in commercial lending rates, limiting their impact on investment and production.
The Bank of Ghana reduced the policy rate from 18 percent following sustained disinflation that brought headline inflation down to 5.4 percent in December 2025 from 23.8 percent in December 2024. Governor Johnson Asiama explained the cut aims to ease credit costs, stimulate private sector activity and support economic growth.
However, analysts warn that structural barriers in the credit market may prevent these benefits from reaching small businesses and individual consumers. Money-market rates have fallen sharply, with the 91 day Treasury bill yield hovering near 11.2 percent in mid-January 2026, down from over 27 percent a year earlier.
The Ghana National Chamber of Commerce and Industry (GNCCI) has called on commercial banks to reduce lending rates in line with the policy rate cut. Chief Executive Seth Twum-Akwaboah stressed that improved access to affordable credit remains critical for supporting investment, production and job creation.
CUTS International has consistently advocated for stronger consumer protection legislation and competition laws in Ghana. Adomako previously highlighted that the absence of these frameworks leaves consumers vulnerable to exploitative practices across multiple sectors.
Fitch Solutions projects the cedi will weaken by eight percent in 2026, below the long term average annual decline of 10.2 percent recorded between 2010 and 2025. The firm noted that elevated global gold prices and healthy international reserves will limit undue pressure on the exchange rate.
The International Monetary Fund (IMF) released an additional 385 million United States dollars to Ghana in December 2025 following favorable reviews of the reform program implementation. The government has committed to disciplined fiscal policy and targeted interventions to sustain macroeconomic gains.
Economic growth is projected to remain strong in 2026, with real Gross Domestic Product (GDP) expected to accelerate to 4.8 percent from an estimated four percent in 2025. The Bank of Ghana anticipates inflation will remain within the medium term target band of eight percent plus or minus two percentage points.
Asiama emphasized that current monetary conditions remain tight relative to prevailing inflation dynamics despite the rate cut. He warned that sustaining gains will require disciplined fiscal policy, strong coordination and vigilance against geopolitical tensions.
