The Ghana Union of Traders Associations (GUTA) has called on the Bank of Ghana to significantly reduce the policy rate in its next monetary policy review, citing improved economic indicators and high borrowing costs facing businesses.
The Union argues that the current policy rate is stifling growth, as high commercial lending rates make credit unaffordable for many local businesses.
“With inflation coming down, we believe the conditions are right for a substantial policy rate cut. This will allow businesses to access credit more affordably and support economic recovery,” said Joseph Paddy, GUTA’s Director of Communications.
Inflation, which stood at 23.5% at the beginning of the year, has now fallen to 10.
GUTA says a lower policy rate would not only ease financial pressure on traders but also enhance the competitiveness of Ghanaian businesses within the sub-region.
The Bank of Ghana is expected to announce its next monetary policy decision following the meeting of its Monetary Policy Committee (MPC) on July 17, 2025.
In a related development, the Abossey Okai Spare Parts Dealers Association has called on the government to review import duties on spare parts to reflect the current exchange rate.
Speaking to reporters, the Association’s Head of Communications, Takyi Addo, acknowledged recent efforts by the government to streamline port charges but said the exchange rate used to calculate duties remains out of step with market realities.
“We are not against paying duties,” Mr Addo said. “But the rate used at the ports is significantly higher than what’s prevailing on the market. This is affecting our ability to stay competitive.”
The Association says the disparity between the official port exchange rate and the open market rate is causing prices to rise, affecting both traders and consumers.
Abossey Okai, located in Accra, is a key hub for Ghana’s automotive industry and serves customers across West Africa. Traders warn that without a fairer duty structure, businesses could be forced to pass on higher costs to consumers.
The Finance Ministry is yet to respond to the Association’s concerns.
