GUTA laments high lending rates despite policy rate cuts

The Ghana Union of Traders Association (GUTA) has voiced concern over the persistently high lending rates charged by commercial banks, despite recent reductions in the policy rate.

According to the Association, lending rates hovering between 22% and 24% remain excessive and do not reflect the central bank’s current monetary policy direction.

Speaking during an engagement with the Minority Caucus on Thursday, March 19, GUTA President Clement Boateng urged the Bank of Ghana to take firmer action to ensure that commercial banks lower their interest rates.

“Banks in Ghana continue to lend at double-digit rates. As the policy rate declines, the regulator must ensure that commercial banks follow suit so businesses and the private sector can access affordable credit to expand,” he said.

Mr Boateng also raised concerns about the effectiveness of the current system, noting that lending rates are not responding adequately to monetary policy adjustments.

He stressed that the situation remains unfavourable for businesses, as high borrowing costs continue to limit growth and investment.