The Ghana Union of Traders Association (GUTA) has voiced concern over the continued high lending rates charged by commercial banks, even though the policy rate has been reduced.
According to the association, interest rates of between 22% and 24% are still too high and do not reflect the central bank’s current monetary policy direction.
Speaking at a meeting with the Minority Caucus on Thursday, March 19, GUTA President Clement Boateng urged the Bank of Ghana to take stronger action to ensure that commercial banks lower their lending rates.
“Ghana’s banks continue to lend at double-digit rates. As the policy rate comes down, I expect the regulator to ensure commercial banks follow suit so that the business community and private sector can access affordable credit to expand their operations,” he said.
Mr Boateng also highlighted concerns with the current VAT system, noting that lending rates are not responding effectively to monetary policy adjustments.
“Just yesterday, the policy rate, which is 5%, was again reduced, yet lending rates remain around 14%. This situation is not ideal for businesses,” he added.
