The Ghana Union of Traders Association (GUTA) has expressed disappointment over the persistently high lending rates charged by commercial banks, despite a decline in the policy rate.
According to GUTA, lending rates ranging between 22% and 24% remain excessive and fail to align with the central bank’s current monetary policy direction.
Speaking during an engagement with the Minority Caucus on Thursday, March 19, GUTA President Clement Boateng called on the Bank of Ghana to take stronger measures to compel commercial banks to reduce their interest 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.
Source: citinewsroom.com
