Since the performance of the country's macroeconomic indicators, such as inflation, is continuing to improve, the Bank of Ghana (BoG) is pleading with commercial banks to lower lending rates.
Elsie Addo Awadzi, the bank's second deputy governor, claims that since the year's commencement, inflation has steadily decreased to 41.2%, signaling signs of progress in the economy.
The Deputy Governor was addressing the beginning of a partnership between Absa Bank and the Mastercard Foundation to offer small companies 10% interest-rate loans.
Since the private sector has grown more liquid and resilient to the storm of economic issues, she advised banks to lend more to it in order to boost growth.
"We anticipate things will improve as the economy strengthens and the macroeconomic environment shows signs of improvement." Prior to my arrival, inflation had decreased from about 50% a few months earlier to 41.2% in April [2023].
"The Monetary Policy Committee and I, as a regulator, forecast that things will get better." Further reductions in lending rates and the inflation rate are anticipated. "I therefore urge all of you banks to follow Absa Bank's lead and lower lending rates even further," she said.
Additionally, she added that small and micro enterprises (SME) are the foundation of the economy and that more credit should be directed towards this sector now that the Africa Continental Free Trade Agreement has been ratified.
decrease prices to make these Ghanaian companies very competitive.
Rossy Fynn, the Mastercard Foundation's country manager, took advantage of the opportunity to make plans for the foundation to launch cutting-edge solutions to benefit small businesses, particularly those pursuing sustainable and green activities.
Abena Osei Opoku, the managing director of Absa Bank, gave the assurance that the bank will continue to be the best option for SME loans.
She also said that the goal of the 10% SME loan is to connect with more than 5,000 small firms and prepare them for investors.
For SMEs and women-owned firms, Absa is offering a low-rate special loan with a 10% interest rate.
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