The Ghana Union of Traders Association (GUTA) is intensifying calls for a reduction in lending rates, urging the Bank of Ghana (BoG) to compel commercial banks to align their interest rates with recent monetary policy adjustments. The appeal follows the central bank’s decision to cut its policy rate from 15.5 percent to 14 percent, a move expected to ease borrowing costs for businesses.
However, GUTA says the expected relief has not reached the private sector. According to the association, commercial banks continue to charge lending rates between 22 and 24 percent, a situation it describes as a major constraint on business growth and job creation.
Speaking during an engagement with the Minority Caucus in Accra, GUTA President Clement Boateng stressed that high borrowing costs are limiting the ability of businesses to access capital needed for expansion. He argued that if lending rates remain elevated, the private sector—which drives employment—will struggle to grow and absorb more workers.
The association is therefore advocating for single-digit lending rates, pointing to countries such as Côte d’Ivoire and Senegal where businesses enjoy significantly lower borrowing costs. GUTA believes Ghana must adopt similar conditions to remain competitive within the sub-region.
While acknowledging improvements in macroeconomic indicators such as declining inflation and a stable policy rate, the association insists that these gains must translate into real benefits for businesses. It has called on the central bank to take a more proactive regulatory stance to ensure that reductions in policy rates are reflected in commercial lending rates.
Source: Graphic Online (Graphic Business)
