Businesses Deem Bank of Ghana’s Monetary Policy Insufficient

0 120

Businesses have expressed dissatisfaction with the Bank of Ghana’s (BoG) 100 basis point reduction in the monetary policy rate, lowering it from 30 percent to 29 percent.

They argue that the marginal decrease is inadequate to drive down interest rates significantly and stimulate substantial business expansion.

According to industry leaders like Mark Badu-Aboagye, CEO of the Ghana National Chamber of Commerce and Industry (GNCCI), the effectiveness of monetary policy measures hinges on their ability to reduce borrowing costs and encourage investment.

Badu-Aboagye emphasizes that unless the reduction in the policy rate translates into lower lending rates, businesses will not witness the desired level of growth and expansion. Badu-Aboagye asserts that a one percent reduction from the high 30 percent policy rate is insufficient to impact lending rates.

He underscores that for businesses to benefit, the policy rate reduction must result in a tangible decrease in lending rates.

Leave A Reply