The Importers and Exporters Association of Ghana is asking commercial banks to significantly reduce lending rates following the sharp decline in the Ghana Reference Rate to 10.02%.

According to the Association’s Executive Secretary, Samson Asaki Awingobit, the drop in the benchmark rate from 14.58% in February to 10.02% in June should translate into more affordable credit for businesses, particularly small and medium-sized enterprises (SMEs) and industries that rely on bank financing to grow and create jobs.

Speaking to Citi Business News, Mr. Asaki expressed concern that many commercial banks continue to lend at rates ranging between 18 and 24% despite improvements in inflation, interest rates and other key macroeconomic indicators.

“We should be expecting lending rates to come down further from 19%, maybe at least to 15 or 14% in order to reflect the Ghana Reference Rate,” he stated.

He argued that since commercial banks use indicators such as the Reference Rate and inflation to price loans, businesses should begin to benefit from the country’s improving economic environment through lower borrowing costs.

Mr. Asaki also encouraged businesses seeking credit facilities to actively negotiate for better loan terms, insisting that banks can no longer justify maintaining high lending rates when the benchmark rate has fallen substantially.

According to him, the gains made in stabilising the economy must be reflected in the real sector through easier access to affordable financing.

“The private sector should be the ultimate beneficiary of the progress made in the economy,” he noted.

Commenting on the recent rise in inflation from 3.4 percent in April to 3.7 percent in May, Mr. Asaki described the increase as modest and manageable compared to the double-digit inflation levels recorded in previous years.

While calling for clarity on the factors behind the uptick, he maintained that the current inflation environment remains supportive of business activity and investment.

“Inflation at 3.7% is still on a good note,” he said.

Mr. Asaki also backed government efforts to reduce the country’s import bill, particularly food imports such as rice, arguing that strengthening domestic production would help retain more resources within the economy, create jobs and improve long-term economic resilience.

He further appealed to the Governor and management of the Bank of Ghana to ensure that reductions in the Ghana Reference Rate are effectively transmitted through the banking sector.

“If the Bank of Ghana has worked hard to bring the reference rate to that point, then we should see a reflection in the commercial banks,” he added.

The Ghana Reference Rate serves as a benchmark for pricing loans and is designed to improve transparency in lending.

Businesses will now be watching closely to see whether commercial banks adjust their lending rates in line with the latest decline in the benchmark rate.