Ghanaian Businesses Struggle as Bank of Ghana Keeps Repo Rate High

Ghana's Repo Rate Remains High: Businesses Question Price Reduction Amidst Cedi Appreciation ACCRA, GHANA - The Bank of Ghana's recent decision to maintain its repo rate at 28 percent has sparked debate among Ghanaian businesses. Many question how they can be expected to lower prices when borrowing costs remain so high. A recent video by SkobaPR7 highlights this concern. "How will the BOG maintain its rate at 28 percent and expect businesses to reduce their prices?" questions SkobaPR7 in his video. He points to the cedi's appreciation against the dollar, as reported by Bloomberg, suggesting a disconnect between monetary policy and the realities on the ground. The video underscores the challenges businesses face balancing profitability with pressure to reduce prices for consumers. The high interest rates increase the cost of borrowing, making it difficult for businesses to absorb rising input costs without passing them on to consumers. The situation highlights the complexities of managing inflation and economic growth in Ghana. While the Bank of Ghana's policy aims to curb inflation, the impact on businesses needs further analysis. A balanced approach is needed to ensure both price stability and the sustainability of businesses.