The Importers and Exporters Association of Ghana has issued a strong demand for commercial banks to sharply reduce their lending rates following a dramatic decline in the Ghana Reference Rate (GRR) to 10.02 percent.
The benchmark rate dropped from 14.58 percent in February to its current level in June, a shift the Association argues must translate into significantly more affordable credit for businesses, particularly small and medium-sized enterprises (SMEs).
In an interview with Citi Business News, Samson Asaki Awingobit, Executive Secretary of the Association, expressed frustration that commercial banks are still lending at rates between 18 and 24 percent, despite steady improvements in inflation and other macroeconomic indicators.
“We should be expecting lending rates to come down further from 19 percent, maybe at least to 15 or 14 percent in order to reflect the Ghana Reference Rate,” Mr. Asaki stated.
He argued that since banks rely on indicators such as the Reference Rate and inflation to price loans, the private sector should now begin benefiting from the country’s economic recovery through lower borrowing costs. He encouraged businesses to actively negotiate for better loan terms, insisting that the sharp fall in the benchmark rate has removed any justification for maintaining high lending rates.
“The private sector should be the ultimate beneficiary of the progress made in the economy,” he noted.
Inflation Rise Deemed ‘Manageable’
Commenting on the country’s latest inflation figures, which ticked up to 3.7 percent in May from 3.4 percent in April, Mr. Asaki described the increase as modest and manageable, particularly when compared to the double-digit inflation levels recorded in previous years.
“Inflation at 3.7 percent is still on a good note,” he said, adding that the current environment remains supportive of business activity and investment.
He also backed government efforts to reduce Ghana’s import bill, especially for food items like rice, arguing that strengthening domestic production would help retain resources, create jobs, and improve long-term economic resilience.
Call for Central Bank Action
Mr. Asaki appealed directly to the Governor of the Bank of Ghana to ensure that the reduction in the Reference Rate is effectively transmitted through the banking sector.
“If the Bank of Ghana has worked hard to bring the reference rate to that point, then we should see a reflection in the commercial banks,” he said.
The Ghana Reference Rate serves as a benchmark for pricing loans and is designed to improve transparency in lending. Businesses will now be closely monitoring whether commercial banks adjust their rates in line with the latest decline.
