The Ghana Union of Traders’ Associations (GUTA) has intensified its call for the Bank of Ghana (BoG) to break the interest rate ceiling and drive commercial lending rates into single digits.

This demand follows the central bank’s decision on January 28, 2026, to slash the Monetary Policy Rate (MPR) by 250 basis points—dropping it from 18% to 15.50%.

While GUTA welcomed the move, its leadership argues that the "pace of relief" for the private sector is too slow to match the current economic recovery.

GUTA President Clement Boateng cautioned that the central bank must act with more urgency.

He argued that with inflation now at a multi-year low of 5.4% (as of December 2025), the wide gap between the policy rate and commercial lending rates is no longer justifiable.

“The Governor shouldn’t wait for the near end of his term before lending rates can be accessed at a single digit,” Mr. Boateng stated in a recent interview. “Processes must be fast-tracked so that maybe in the next year or two, lending rates must be ticking or must get to a single digit so that businesses can be able to borrow.”

Despite the BoG's aggressive cuts—totaling 900 basis points over the past year—commercial banks have been slow to pass the savings on to traders.

While the policy rate sits at 15.5%, average commercial lending rates still hover around 20.45%.

GUTA points out that banks often cite operational risks and legacy non-performing loans (NPLs) to keep rates high, even as the Cedi remains stable.

The push for single-digit rates comes as Ghana’s macroeconomic indicators show their strongest performance in years:

• Inflation: Dropped sharply from 23.8% in late 2024 to 5.4% by year-end 2025.
• Currency: The Cedi appreciated by over 40% against the US Dollar in 2025.
• Reserves: International reserves have hit $13.8 billion, providing nearly 6 months of import cover.

For the average Ghanaian trader, high interest rates act as a tax on expansion.

GUTA argues that single-digit lending is the only way to make the African Continental Free Trade Area (AfCFTA) viable for local SMEs, who currently struggle to compete with foreign firms accessing credit at 2% or 3%.

"We are hoping that things will get better," the GUTA President noted in an interview with Citi Business, emphasizing that the focus of policy must now shift from merely achieving stability to actively supporting real sector recovery and job creation.