Reduce interest rates to reflect policy rate - AGI

Stakeholders and Industry Players are questioning the inability of banks to reduce interest rates in the face of consistent reduction in policy rate. 

The Central Bank reduced the Policy rate from 22.5% to 21% in its latest monetary policy committee report. 

Speaking to GBC`s Radio Ghana, President of the Association of Ghana Industries, AGI, James Asare Agyei, said the criteria for determining interest rate should be reviewed.

The National President of the Ghana Union of Traders Association, GUTA, Barimah Dr Ameyaw Ofori, called on government to intervene for banks to reduce interest rates to reflect the policy rate.
 
Dr Ofori explained that without a reduction in the interest rate, the reduction in policy rates will not have any impact on prices on the market.

For his part, a Lecturer at the Finance Department of the University of Ghana, Dr Laud Mensah, said he expects Commercial Banks to reduce interest rates on loans to reflect the Central Bank's prime rate. 

GBCONLINE