Reduce lending rates to reflect decline in inflation – BoG appeals to banks

The Bank of Ghana has called on commercial banks operating in the country to reduce lending rates just as the country’s inflation figures continue to post declines.

In the month of April this year, the Ghana Statistical Service announced that the figure for inflation was pegged at 41.2 percent from an earlier 45 percent recorded in March 2023.

Second Deputy Governor of the Central Bank, Elsie Addo Awadzi said the decline in national inflation signal signs of improvement in the domestic economy with further development likely to occur.

“As the economy picks up and there is a signal of improvement in the macro economy, we expect things to get better. Moments ago, before I got here, inflation has dropped to 41.2% for April [2023], from the about 50% some months ago”.

“We as a regulator and at the Monetary Policy Committee project that things will improve. Inflation rate will drop further and lending rates will come down. I, therefore, encouraged you all as banks to emulate Absa Bank and bring the lending rates down further”

She made this known at an event organised by Absa Bank in collaboration with Mastercard Foundation to launch a loan scheme for small businesses at 10 percent rate.

The Second Deputy Governor of BoG further called on commercial banks to proving support to private to propel growth and become more liquid to contain economic headwinds.

MA/FNOQ