The Ghana Union of Traders’ Associations (GUTA) is pressing the Bank of Ghana to accelerate measures that push commercial lending rates into single digits.
This call comes after the central bank’s recent policy rate cut from 18% to 15.5%.
In an interview with Citi Business News, GUTA President Clement Boateng said the reduction must quickly lower borrowing costs for businesses, ease operating expenses, and boost credit access especially for traders and SMEs nationwide.
“That was something the governor said, and I was very happy about it. But we think it should be fast-tracked. The governor shouldn’t wait until the near end of his term before lending rates hit single digits,” Boateng stated.
“Processes must be fast-tracked so that maybe in the next year or two, lending rates tick down to single digits and businesses can borrow affordably,” he added.
Businesses have long griped about tight credit and sky-high borrowing costs, stifling growth and investment. Many now hope improving macro indicators like cooling inflation and steadier currency will pave the way for deeper rate cuts and cheaper financing soon.
Story by: Mercy Addai Turkson #ahotoronline.com