The latest con­fidence survey conducted by the Bank of Gha­na (BoG) has revealed improve­ment in business confidence on the back of strong macroeconom­ic fundamentals, easing inflation­ary pressures, and resilient growth momentum in the economy.

The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, who disclosed this in Accra on Wednesday said firms met their short-term targets and expressed optimism about compa­ny and industry prospects.

He said that though consumer confidence slightly softened, it remained firm.

Speaking at a press briefing in Accra after the 126th Monetary Policy Committee (MPC) meet­ing, Dr Asiama said the Bank’s high-frequency indicators contin­ued to point to sustained momen­tum in economic activity.

He said the Composite Index of Economic Activity (CIEA) recorded an annual growth of 6.1 per cent in July 2025, up from 1.9 per cent in July 2024, buoyed by international trade, consumption and industrial production.

On the domestic front, he said the economy had shown resilience, posting real GDP growth of 6.3 per cent in the second quarter of 2025 compared to 5.7 per cent in the same period last year.

Excluding oil, GDP expanded by 7.8 per cent, driven largely by services, which grew by 9.9 per cent, and agriculture, which rose by 5.2 per cent. The Purchasing Managers’ Index (PMI also picked up, indicating increased new orders and improving business conditions.

Inflation continued to decline steadily, with headline inflation dropping to 11.5 per cent in August 2025 from 12.1 per cent in July—the lowest reading in four years.

This marked the eighth consec­utive month of decline, supported by prudent monetary policy, fiscal consolidation, appreciation of the cedi, and improved food supply.

Core inflation also eased, affirming the ongoing disinflation process.

In line with these develop­ments, the MPC, by a majority decision, voted to cut the policy rate by 350 basis points to 21.5 per cent, relative to the 300 basis points cut in July 2025, which brought the policy rate to 25 per cent.

Dr Asiama explained that the decision was to reinforce the dis­inflation process, lower borrowing costs, and further stimulate private sector activity.

Interest rates on the money market and lending rates have already begun easing.

The 91-day Treasury bill rate declined to 10.3 per cent in August from 13.4 per cent in July, while average lending rates dropped from 26.6 per cent to 24.2 per cent over the same period.

The Governor also announced an additional policy measure to strengthen the banking sector and promote stability in the foreign exchange market.

Effective October 1, 2025, the Net Open Position (NOP) limits for banks have been revised, with the single currency NOP adjusted from ±5 per cent to between 0 per cent and –10 per cent.

On the fiscal front, Dr Asiama noted that strong consolidation efforts had kept the deficit at 1.1 per cent of GDP by July, better than the target of 2.1 per cent. Public debt stood at 44.9 per cent of GDP at the end of July, down from 61.8 per cent in December 2024.

The external sector also improved, posting a trade surplus of S$6.2 billion in the first eight months of the year, compared to $2.1 billion in the same period in 2024.

Gross International Reserves rose to US$10.7 billion, equivalent to 4.5 months of import cover.