Policy Rate Drops to 25% — But Will It Move the Needle for Businesses?

The Bank of Ghana on 30 July 2025 announced a policy rate cut by 300 basis points, from 28% to 25%. On paper, that’s big. A lower policy rate should make borrowing cheaper and free up more capital for businesses, right?

But here’s the real question: Will this actually trickle down to the average small business owner trying to secure a loan?

Many of us in finance and business circles know the theory: lower policy rates typically encourage lending, reduce the cost of capital, and support growth. But in reality, banks remian cautious, and access to credit remains tough, especially for small and medium-sized businesses.

That said, this move by the central bank is still a signal that inflation is cooling and the central bank is now more focused on growth than firefighting price hikes.

For finance leaders and business owners, this is the time to:

Review your current debt agreements. Take a close look at your existing loans and lines of credit. While fixed-rate loans won't change, variable-rate loans or credit facilities might be impacted. Understanding your current interest rates and repayment terms is the first step to identifying potential savings.

Explore refinancing options. With a lower policy rate, it's worth checking with your bank or other lenders to see if you can get a better deal. Refinancing an existing loan could lower your monthly payments, improve your cash flow, and free up capital for other business needs.

Revisit growth plans. If you put a new hire, equipment purchase, or expansion on hold due to high borrowing costs, now is the time to re-evaluate. A more favorable lending environment could make it financially viable to restart those projects and capitalize on a more stable economic outlook.

While the policy shift won’t solve all challenges overnight, it’s a clear signal that the tide may be turning. The key now is to watch how commercial banks and credit institutions respond — and whether this leads to real improvements in credit access and cost for businesses.

Is your business starting to feel any ripple effects yet? It might still be early days, but we’d love to hear if things are beginning to shift on the ground.