The Ashanti Business Owners Association (ABOA) has commended the Bank of Ghana and the Ghana Association of Banks for their collaborative efforts in lowering the Ghana Reference Rate (GRR) from 14.58 percent to 11.71 percent.
In a press release issued on March 5, the association said the adjustment represents a strategic and carefully calibrated measure aimed at improving credit affordability for both businesses and households.
According to ABOA, the reduction in the benchmark rate is expected to help stimulate private-sector expansion, particularly among small and medium-sized enterprises (SMEs) that have been grappling with tight liquidity and high financing costs.
The association explained that the Ghana Reference Rate serves as a key benchmark influencing commercial lending rates within the banking sector. As such, any downward revision in the rate has the potential to significantly shape the pricing of credit offered by financial institutions.
ABOA noted that the latest reduction could lead to a number of positive outcomes across the economy. Among them is improved access to credit for businesses operating in critical sectors such as manufacturing, trade, and agribusiness.
The group also believes the move will help reduce the debt servicing burden on existing borrowers while boosting working capital flows for companies seeking to expand operations.
Additionally, the association said the lower reference rate could help strengthen investor confidence in Ghana’s financial sector reforms, creating a more supportive environment for economic activity and long-term investment.
Despite welcoming the development, ABOA urged commercial banks to ensure that the benefits of the revised rate are passed on to final borrowers in a transparent and timely manner.
The association stressed that the intended impact of the policy can only be achieved if lending institutions reflect the reduction in their loan pricing structures.
