Ashanti Business owners applaud cut in reference rate

The Ashanti Business Owners Association (ABOA) has praised the Bank of Ghana and the Ghana Association of Banks for their joint efforts in reducing the Ghana Reference Rate (GRR) from 14.58 percent to 11.71 percent.

In a statement issued on March 5, the association described the adjustment as a strategic and well-calibrated move aimed at improving the affordability of credit for businesses and households.

According to ABOA, the reduction in the benchmark rate is expected to support private sector growth, particularly for small and medium-sized enterprises (SMEs) that have struggled with limited liquidity and high borrowing costs in recent years.

The association explained that the Ghana Reference Rate serves as a key benchmark that influences commercial lending rates across the banking sector. As a result, any downward revision has the potential to significantly affect how financial institutions price credit.

ABOA noted that the latest reduction could improve access to financing for businesses operating in critical sectors such as manufacturing, trade and agribusiness.

The group also believes the move could ease the debt servicing burden on existing borrowers while increasing working capital for companies seeking to expand their operations.

In addition, the association said the lower reference rate could help strengthen investor confidence in ongoing financial sector reforms in Ghana, creating a more supportive environment for economic growth and long-term investment.

Despite welcoming the development, ABOA urged commercial banks to ensure that the benefits of the revised rate are passed on to borrowers in a transparent and timely manner.

According to the association, the intended impact of the policy will only be fully realised if lending institutions reflect the reduction in their loan pricing structures.