PwC Urges CEOs and Boards to Track Inflation, Treasury Bill Yields and Lending Rates as Ghana's Economy Stabilises

Accra, Ghana — Professional services firm PricewaterhouseCoopers (PwC) has urged chief executive officers, business owners and corporate boards to pay close attention to Ghana's monthly inflation figures, Treasury bill (T-bill) yields and commercial lending rates, warning that these indicators will determine the pace of business growth and investment during the remainder of 2026.

 

The advice comes at a time when Ghana's macroeconomic fundamentals have improved significantly compared to the crisis period of 2022 and 2023, with inflation declining sharply, interest rates easing and investor confidence gradually returning.

 

Ghana's Inflation Has Fallen Dramatically

One of the strongest indicators of Ghana's economic recovery is inflation.

According to recent economic data:

Indicator	Latest
Headline Inflation	5.3%
Bank of Ghana Policy Rate	14.0%
Average Commercial Lending Rate	17.64%

Despite inflation falling to 5.3%, businesses continue to borrow at an average lending rate of 17.64%, creating a gap of more than 3.6 percentage points above the central bank's policy rate. PwC argues that this disconnect is preventing many firms—especially SMEs—from fully benefiting from the country's improving macroeconomic environment.

 

Why CEOs Should Watch Monthly Inflation

Inflation affects virtually every aspect of business operations.

Even a movement of one percentage point can influence:

1. Cost of imported raw materials
2. Employee wage negotiations
3. Consumer purchasing power
4. Inventory replacement costs
5. Pricing strategies
6. Profit margins
    

For finance directors and procurement managers, monthly inflation data should therefore become a key performance indicator rather than simply an economic statistic.

 

Treasury Bill Rates Are a Business Signal

PwC also encouraged businesses to monitor movements in Treasury bill yields.

1. Treasury bills influence:
2. Government borrowing costs
3. Corporate investment decisions
4. Bank liquidity
5. Loan pricing
6. Returns on surplus corporate cash
    

When Treasury bill yields rise, banks often have less incentive to lend aggressively to the private sector because government securities become more attractive. Conversely, falling T-bill rates generally encourage increased private sector lending and investment.

 

The Bank of Ghana continues to publish daily market data on Treasury bill yields and other monetary indicators.

Lending Rates Remain the Biggest Concern

Although Ghana's macroeconomic indicators have improved considerably, PwC believes the private sector has yet to experience the full benefits.

The firm argues that:

1. Lower inflation should translate into cheaper bank loans.
2. Reduced financing costs would encourage businesses to expand operations.
3. SMEs would gain improved access to credit.
4. Private sector investment and job creation would accelerate if commercial banks pass on lower funding costs to borrowers. 

 

Corporate Boards Must Become More Data-Driven

PwC recommends that boards move beyond reviewing historical financial statements and begin incorporating macroeconomic monitoring into strategic oversight.

Boards should regularly review:

1. Monthly inflation trends
2. Treasury bill yields
3. Commercial lending rates
4. Exchange rate movements
5. Cash flow forecasts
6. Debt servicing costs
7. Capital expenditure plans

This enables organisations to react quickly to changing economic conditions rather than waiting until profitability is affected.

 

What This Means for Businesses

For Ghanaian businesses, the improving macroeconomic environment presents an opportunity to revisit expansion plans that may have been postponed during the period of high inflation and elevated interest rates.

Companies with healthy balance sheets may find opportunities to:

1. Refinance existing debt as borrowing costs gradually decline.
2. Expand production capacity.
3. Invest in new technology and equipment.
4. Increase inventory in anticipation of stronger consumer demand.
5. Strengthen working capital management.

 

However, PwC cautions that executives should continue monitoring economic data closely because improvements in headline indicators do not automatically translate into easier access to finance or lower borrowing costs.

 

24HourBusiness Analysis

The message from PwC is clear: Ghana's economy is entering a new phase of stability, but business leaders should not become complacent. While inflation has fallen to around 5.3% and the Bank of Ghana's policy rate stands at 14.0%, the average commercial lending rate remains 17.64%, indicating that the transmission of monetary policy to the real economy is still incomplete.

For CEOs, CFOs and boards, success over the next 12 months will depend on closely monitoring three key indicators:

1. Monthly inflation – to anticipate cost pressures and pricing decisions.
2. Treasury bill yields – to gauge liquidity conditions and financing trends.
3. Commercial lending rates – to determine the right timing for borrowing and investment.
4.  

Businesses that integrate these macroeconomic indicators into boardroom decision-making are likely to be better positioned to manage risk, improve capital allocation and take advantage of Ghana's improving economic outlook.