PwC forecasts 12% policy rate, US$1-GH¢13 by 2027            

PricewaterhouseCoopers (PwC) Ghana is forecasting a gradual easing of monetary policy, with the Bank of Ghana’s policy rate expected to decline to 12–13 percent by early 2027, while the Ghana cedi is projected to gradually weaken to about GH¢13 to US$1 by the end of 2026. The outlook provides an important perspective on the direction of Ghana’s monetary and foreign exchange markets as the economy continues its recovery and macroeconomic conditions evolve.

The forecast suggests that sustained improvements in inflation and broader macroeconomic stability could create room for lower interest rates, potentially easing borrowing costs and improving access to credit for businesses and households. A reduction in the policy rate could also support private-sector activity and investment by making financing more affordable, although the pace of monetary easing will depend on developments in inflation, exchange-rate pressures and other economic risks.

At the same time, the projected gradual depreciation of the cedi highlights the continued importance of foreign-exchange stability for businesses operating in Ghana. A weaker cedi could increase the cost of imported goods, inputs and equipment, while businesses with foreign-currency obligations may face additional financial pressures. For exporters and firms earning foreign currency, however, exchange-rate movements could offer some competitiveness benefits.

For investors and the private sector, the outlook reinforces the importance of monitoring the interaction between interest rates, inflation and exchange-rate movements. While lower interest rates could strengthen domestic economic activity, maintaining currency stability and investor confidence will remain essential to ensuring that macroeconomic gains translate into sustainable private-sector growth.

Source: Business & Financial Times (B&FT).

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