The Association of Ghana Industries (AGI) is challenging the Bank of Ghana (BoG) to compel banks to reduce their lending rates following the Policy Rate cut.
The Monetary Policy Committee (MPC) has reduced the key benchmark rate at which the central bank lends to commercial banks from 23.5 percent to 22.5 - representing a drop of 100 basis points or 1 percentage point.
The AGI has welcomed it and is demanding banks also immediately reduce their lending rates - especially after a similar cut in the Policy Rate earlier this year.
The President of AGI, James Asare Agyei is sceptical banks will on their own reduce their rates to the relief of businesses.
"The BoG should think about capping interest rates so that with Policy Rates coming down by 300 basis points, it is expected that at least the stretch between the Policy Rate and Base Rate of banks should not exceed 400 basis points.
"By so doing, it will regulate how much banks can charge on the credit they give," he said.
Analysts have, however, kicked against this arguing only market forces should be allowed to determine such rates in a free market economy like Ghana’s.
But Mr. Asare Agyei believes otherwise saying "we are not calling for control, we are calling for regulation and monitoring of the activities of the commercial banks."
He argues that such monitoring and regulation is needed so that "businesses can leverage on the good things happening in the economy at the moment."
Latest Stories
-
Border restrictions impact businesses and residents amid Togo elections
1 hour -
We’ve helped close leakage gaps – SML maintains
1 hour -
Ketu South MCE commissions an ultra-modern toilet facility in Aflao
1 hour -
Sunyani East parliamentary elections: Ransford Antwi to contest as an independent candidate
1 hour -
Publish full KPMG report on SML/GRA contract – NDC to Akufo-Addo
1 hour -
Inspire Action trains 24 people in vocational training
2 hours -
The government pays little attention to the health sector – Sammy Gyamfi
2 hours -
Peter Amewu mourns after mother’s death
2 hours -
Contract between the government and SML unlawful- Sammy Gyamfi
2 hours -
Dennis Agyei Boateng: Harnessing the power of development communication for Ghana’s development
2 hours -
Achieving equity in the fight against malaria requires greater domestic resource mobilisation
2 hours -
MP Murder Case: Defence Counsel to file ex-parte application to subpoena persons to assist trial
2 hours -
Eat healthy foods to attain anti-aging goals – NutritionistÂ
2 hours -
4 little ways to tell if you’re crazy-in-love or just crazy-obsessed
2 hours -
Court jails man seven years for cocoa smugglingÂ
2 hours