The Ashanti Business Owners Association (ABOA) has commended the Bank of Ghana (BoG) and the Ghana Association of Banks for reducing the Ghana Reference Rate (GRR) from 14.58% to 11.71%.

In a press statement signed by the Executive Secretary of ABOA, Charles Kusi Appiah Kubi, on March 5, the association described the move as a timely intervention aimed at easing borrowing costs and supporting businesses across the country.

ABOA said the adjustment represents “a strategic and well-calibrated intervention designed to lower borrowing costs for businesses and households.”

According to the association, the reduction signals a renewed effort to restore credit affordability and stimulate private-sector growth, particularly for small and medium-sized enterprises (SMEs) grappling with liquidity constraints and high financing costs.

“As a key benchmark influencing commercial lending rates, the Ghana Reference Rate plays a vital role in shaping credit pricing within the banking sector,” the statement said.

ABOA noted that the downward revision of the benchmark rate is expected to improve access to credit for businesses, particularly those operating in manufacturing, trade, and agribusiness.

It added that the change could also help reduce the debt servicing burden for existing borrowers, increase working capital available for business operations and growth, and boost investor confidence in ongoing financial sector reforms.

The association further called on commercial banks to ensure that the reduction in the benchmark rate translates into tangible benefits for borrowers.

“We urge commercial banks to ensure that the reduction in the Ghana Reference Rate is effectively passed on to final borrowers in a transparent and timely manner so that the intended benefits are fully realised across the productive sectors of the economy,” the statement said.

ABOA also reaffirmed its commitment to engaging policymakers and stakeholders within the financial sector to advocate for reforms that promote competitive financing and economic growth.

“We remain committed to constructive engagement with policymakers and financial sector stakeholders to advocate for reforms that promote competitive financing, improve productivity, and foster inclusive economic growth,” the association added.