The Ashanti Business Owners Association (ABOA) has praised the Bank of Ghana (BoG) and the Ghana Association of Banks for their joint efforts in slashing the Ghana Reference Rate (GRR) from 14.58% to 11.71%.
ABOA described the move as a timely, strategic adjustment aimed at easing borrowing costs for businesses and households. In a statement, the group highlighted how the cut demonstrates commitment to affordable credit and private-sector growth, especially for SMEs grappling with liquidity shortages and high financing expenses.
As a core benchmark for commercial lending rates, the GRR shapes credit pricing across the banking sector. ABOA expects the revision to deliver:
Better credit access for businesses in manufacturing, trade, and agribusiness.
Lower debt servicing costs for current borrowers.
Boosted working capital for operations and expansion.
Greater investor trust in Ghana’s financial reforms.
“We call on commercial banks to swiftly and transparently pass this reduction to end borrowers, ensuring full benefits reach the economy’s productive sectors,” the statement urged.
ABOA pledged ongoing collaboration with policymakers and financial stakeholders to push for competitive financing, higher productivity, and inclusive growth.
The GRR Ghana’s key loan-pricing benchmark fell sharply to 11.71% for March from 14.58% in February, one of the steepest drops in recent years. Industry experts attribute it to the government’s fiscal consolidation, which curbs domestic borrowing, alongside surplus liquidity in banks.
Story by: Mercy Addai Turkson#ahotorfmonline.com