Economist and lecturer at the University of Ghana Business School, Professor Patrick Asuming, has raised concerns over the Bank of Ghana’s (BoG) recent decision to slash its benchmark policy rate by 350 basis points to 21.5 percent.

Describing the move as “quite aggressive,” Professor Asuming argued that Ghana’s inflation outlook remains fragile, with risks that could undermine recent progress in price stability.

He noted that upcoming utility tariff hikes, in particular, may push inflation upward again. “Personally, I think that it is quite aggressive. Even if there was going to be a cut — considering that at the previous meeting there was a substantial cut — I would have thought it would be more moderate,” he said in an interview on Citi Eyewitness News.

The BoG announced the latest cut on Wednesday, September 17, 2025, after its 126th Monetary Policy Committee (MPC) meeting in Accra. Governor Dr. Johnson Asiama explained that the decision is intended to stimulate credit expansion and support Ghana’s economic recovery.

This follows a 300-basis-point reduction in July, which lowered the rate from 28 percent to 25 percent. Earlier in March, the central bank had raised the rate slightly from 27 to 28 percent, before holding it steady in May.