Importers and Exporters Call for Urgent Cut in Lending Rates Amid Falling Inflation

Importers and exporters are calling on Finance Minister Dr. Cassiel Ato Forson to work with the Bank of Ghana and commercial banks to lower lending rates, which they say remain unreasonably high despite improving macroeconomic indicators.

With inflation declining sharply to 13.7% by the end of June 2025, members of the Importers and Exporters Association argue that the average lending rate of 27% is no longer justified and is stifling business growth and investment.

Speaking in response to the recently presented mid-year budget, the Association’s Executive Secretary, Samson Asaki Awingobit, acknowledged the government’s economic reforms but criticized the mismatch between inflation trends and current borrowing costs.

“If inflation has dropped from 23.8% to 13.7%, that’s clear progress. But businesses are still struggling under interest rates close to 27%. That doesn’t reflect the reality of our economy,” Awingobit said.

He pointed out that during periods of much higher inflation—up to 40%—lending rates hovered around 30%. Now that inflation has nearly halved, he believes interest rates should follow suit.

“The Bank of Ghana must intervene and ensure commercial banks align lending rates with the current economic climate. Otherwise, access to capital will remain a barrier for local businesses,” he added.

The call for interest rate adjustments comes as businesses seek relief to spur growth, improve competitiveness, and support ongoing efforts to stabilize the economy.