The Ashanti Business Owners Association has commended the Bank of Ghana and the Ghana Association of Banks for their collaborative efforts in reducing the Ghana Reference Rate (GRR) from 14.58% to 11.71%.

According to the group, this adjustment will lower borrowing costs for businesses and households.

In a statement copied to GhanaWeb Business, the Association noted that; “The reduction signals a strong commitment to restoring credit affordability and stimulating private-sector growth, particularly for SMEs facing tight liquidity and high financing costs.”

It further emphasized: “As a key benchmark influencing commercial lending rates, the Ghana Reference Rate plays a vital role in shaping credit pricing within the banking sector.”

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The downward revision of the Ghana Reference Rate is expected to improve access to credit for businesses, especially in the manufacturing, trade, and agribusiness sectors.

It will also reduce debt-servicing burdens for existing borrowers and augment working capital flows to support business operations and growth.

The group urged commercial banks to ensure that the reduction in the Ghana Reference Rate is effectively passed on to final borrowers in a transparent and timely manner, so that the intended benefits are fully realized across the productive sectors of the economy.

SA

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