Concerns are mounting within Ghana’s business community as high lending rates continue to weigh on private sector growth, despite recent monetary policy easing by the Bank of Ghana.
The Ghana Union of Traders Association (GUTA) has criticized commercial banks for failing to pass on the benefits of a reduced policy rate to borrowers. According to the association, lending rates remain stubbornly high—hovering between 22% and 24%—a level they say is out of step with current economic conditions.
Speaking during a meeting with the Minority Caucus on Thursday, March 19, GUTA President Clement Boateng urged regulators to take a more proactive stance. He argued that without intervention, banks are unlikely to lower borrowing costs in a way that supports business expansion.
Boateng emphasized that the gap between the central bank’s policy rate and commercial lending rates is limiting access to affordable credit, especially for small and medium-sized enterprises. He stressed that easing borrowing conditions is critical for stimulating growth in the private sector.
In addition to interest rate concerns, GUTA also raised issues with the current VAT system, suggesting it may be contributing to inefficiencies in how monetary policy adjustments affect the broader economy.
The association maintains that unless structural issues within the financial system are addressed, reductions in the policy rate alone will not translate into meaningful relief for businesses.
