The Ghana Union of Traders’ Associations (GUTA) is asking the Bank of Ghana to fast-track measures that will drive commercial lending rates into single-digit.
This follows the central bank’s recent policy rate cut from 18 percent to 15.50 percent.
GUTA President Clement Boateng, in a Citi Business News interview, said the reduction should translate into lower borrowing costs for businesses, ease the cost of doing business, and improve access to credit, particularly for traders and SMEs across the country.
“That was something that the governor said, and I was very happy about it. But we think it should be fast-tracked. The governor shouldn’t wait for the near end of his term before lending rates can be accessed at a single digit.
“Processes must be fast-tracked so that maybe in the next year or two, lending rates must be ticking or must get to a single digit so that businesses can be able to borrow,” he said.
Businesses have long complained about tight credit conditions and high borrowing costs, which continue to constrain expansion and investment.
Many are now hopeful that recent improvements in macroeconomic indicators particularly easing inflation and relative currency stability will create room for further reductions in lending rates and improve access to affordable financing in the months ahead.
