Source: newsthemegh.com
The Bank of Ghana has advised the commercial banks doing business in Ghana to cut their lending rates as the nation’s inflation rates are declining.
The Ghana Statistical Service reports that the rate of inflation for April 2023 was 41.2 percent, down from the previously reported rate of 45 percent in March 2023.
Elsie Addo Awadzi, the second deputy governor of the central bank, stated at an event organized by Absa Bank in partnership with the Mastercard Foundation to launch a loan program for small businesses at a 10% rate that this decline in national inflation indicates a positive trend in the domestic economy, with further development anticipated.
She continued by saying that there is a chance for a better future as the macroeconomic environment improves and the economy recovers.
“We anticipate things will improve as the economy strengthens and the macroeconomic environment shows signs of improvement. Prior to my arrival, the inflation rate had decreased from roughly 50% to 41.2% for April 2023.
“The Monetary Policy Committee and I, as a regulator, forecast that things will get better. Both the inflation rate and loan rates will decline. I therefore urge all other banks to follow Absa Bank’s lead and lower lending rates even further,” she continued.