GNCCI calls on banks to cut lending rates following BoG Policy rate reduction

The Ghana National Chamber of Commerce and Industry (GNCCI) has welcomed the Bank of Ghana’s decision to cut the Monetary Policy Rate from 18 per cent to 15.5 per cent, describing it as a timely boost for business recovery and private sector growth.

In a press statement issued on January 29, 2026, the Chamber said the rate reduction reflects improving macroeconomic conditions and a gradual easing of monetary policy. It noted that between January 2025 and January 2026, the policy rate has been reduced cumulatively by 11.5 percentage points, signalling growing confidence in economic stability.

However, GNCCI raised concerns that the relief from the policy rate cuts has yet to be felt by businesses, as commercial bank lending rates remain high.

According to the Chamber, non-interest cost components and bank-specific charges—including risk premiums, operating expenses, profit margins, processing and arrangement fees, and commitment charges—continue to add about four to five percentage points to the policy rate. These additional costs, it said, make credit prohibitively expensive for both large firms and small and medium-sized enterprises (SMEs).

The Chamber therefore called on commercial banks to complement the central bank’s easing efforts by reviewing and reducing non-interest charges. It also urged the adoption of risk-sharing mechanisms and credit enhancement frameworks to lower lending risks and bring down borrowing costs.

GNCCI stressed that a stronger transmission of monetary policy easing to borrowers would support sustainable credit expansion, reduce non-performing loans, stimulate investment in productive sectors, and ultimately strengthen private sector–led economic growth.