Finance and Tax Analyst, Nelson Cudjoe Kuagbedzi, has projected a reduction in the Bank of Ghana’s monetary policy rate to 14.5 per cent, ahead of the conclusion of the 128th Monetary Policy Committee (MPC) meeting expected on January 28, 2026.

The monetary policy rate the benchmark rate at which the central bank lends to commercial banks currently stands at 18 per cent. Mr. Cudjoe Kuagbedzi believes prevailing macroeconomic conditions provide sufficient justification for a significant cut.

Speaking to Citi Business News, the analyst cited the end-year inflation rate of 5.4 per cent, alongside government plans to drive job creation through private sector–led growth, as key factors underpinning his projection.

“Considering the fact that inflation ended the year at 5.4 per cent, while the policy rate remained at 18 per cent as of November, it is only prudent for the Bank of Ghana to reduce the policy rate by about 350 basis points to 14.5 per cent,” he explained.

He further noted that the government’s target of creating over 600,000 jobs in 2026 will largely depend on private sector expansion, which requires access to affordable credit. According to him, maintaining a high cost of capital could undermine efforts to stimulate business growth and employment.

“If the cost of capital is too high, businesses cannot borrow to expand their operations and ultimately create the jobs needed for the economy,” he said, adding that easing monetary conditions would support investment and improve employment outcomes.

Mr. Cudjoe Kuagbedzi also pointed to Ghana’s unemployment challenges, arguing that a further reduction in the policy rate would help stimulate lending, boost productivity, and strengthen overall economic recovery.

He expressed optimism that the central bank would take these factors into account in its upcoming policy decision, reinforcing expectations of a rate cut to support growth while maintaining price stability.