The Ghana Union of Traders’ Associations (GUTA) is pressing the Bank of Ghana to hold or lower the monetary policy rate ahead of today’s Monetary Policy Committee (MPC) meeting. This move, they argue, would reduce borrowing costs and boost business growth amid high financing challenges.
The current policy rate sits at 18%. GUTA President Clement Boateng emphasized the need for stability or relief, warning against any hikes.
“I don’t expect any increments in the monetary policy rates. If anything at all, it should be maintained,” Boateng said. “But what we have been saying is that whenever there is any monetary policy decrease, we don’t see a corresponding decrease in the lending rates. That is what we have always been calling for.”
He pointed to the last MPC decision, where the reference rate dropped marginally from around 16.9% to about 16.6% “minimal and [with] no positive impact” on lending rates.
Boateng urged the MPC to maintain or cut the policy rate to drive down lending costs, enabling businesses to borrow, expand, and create jobs.
Story by: Mercy Addai Turkson #ahotoronline.com