High lending rate a concern as importers and exporters push for immediate reduction

Importers and exporters are urging Finance Minister Dr. Cassiel Ato Forson to take decisive steps to help reduce the high lending rates by commercial banks.

With inflation falling to 13.7 percent by end-June 2025, the importers and exporters say the prevailing interest rate environment is no longer aligned with current macroeconomic conditions and is hampering business growth.

They argue that, the current average lending rate of 27 percent is excessively high and should be revised to reflect the downward trend in inflation.

Commenting on the recently presented mid-year budget, the Executive Secretary of the Association, Samson Asaki Awingobit, said that lowering lending rates would offer much-needed relief for businesses.

“If inflation has dropped, and the fiscal policies are yielding results, then the reduction in inflation from 23.8 percent to 13.7 percent is a positive development. However, we are still facing challenges with high lending rates,” he said.

“We are not reluctant to acknowledge the government’s efforts. But if inflation has declined to 13.7 percent, why are we still burdened with bank interest rates at 27 percent? Previously, when inflation was at 40 percent, lending rates were around 30 percent. Now that inflation has fallen significantly, the lending rates should also come down.”

He added, “I strongly believe the Bank of Ghana must take steps to ensure commercial banks adjust their interest rates in line with the current inflation rate.”