The Governor of the Bank of Ghana (BoG), Dr. Abdul Nasir Issahaku, has vowed to bring down Ghana’s high interest rates.
Ghana has one of the highest interest rates in the world, with average interest hovering around 35 percent.
The BOG’s policy rate which is used by commercial banks to calculate their base rates is currently at 26 percent.
The high figures, together with other challenges have forced businesses to avoid credit from the banks.
But speaking to Citi Business News, Dr. Issahaku said prospects are high to bring down inflation, which will in turn help reduce high interest rates in Ghana.
“High interest rates is something that concerns all of us, conventionally, when we bring down inflation as part of stabilising the economy , expectation is that it will pull down interest rates”, he assured.
He indicated that the central bank is working to introduce other monetary tools to help reduce interest rates and stabilise other macroeconomic indicators.
“We have to begin to bring other tools into the arena to ensure that the real sector does well as we try to bring interest rates down”, he said.
Dr. Issahaku pointed out that a moderate rate would improve the economy and stimulate aggregate demand for growth.
By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana