The Ghana Union of Traders Association (GUTA) has registered its disquiet at the commercial banks’ high lending rates, despite the central bank’s policy rate cuts.
“Ghana’s banks continue to lend at double-digit rates,” said GUTA President, Clement Boateng, urging the Bank of Ghana (BoG) to force banks to lower rates. Lending rates of 22-24% are “not ideal for businesses,” Boateng said, as the policy rate drops.
He expects the regulator to ensure banks pass on benefits to customers. “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 added.Boateng also criticized the VAT system, saying lending rates aren’t responding to monetary policy adjustments.
The latest policy rate cut to 14% hasn’t reflected in banks’ rates, which remain around 22-24%, he noted
