Bank of Ghana to cut prime rate further

The Bank of Ghana will cut its prime rate further this year, the Reuters have reported citing a Finance Ministry statement.

The prime rate is currently pegged at 18%.

The Ghanaian business community and industry have been arguing for a drastic cut in the rate. They are of the view that a cut would stimulate borrowing and lending and subsequently boost business growth, increase productivity and create employment.

“Validating earlier projections by the government’s economic planners, the Governor of the bank, Mr Kwesi Amissah-Arthur, said the economy would this year see a further reduction in inflation and interest rates and a general price stability,” the report quoted the central bank governor as saying in the statement dated January 27.

By Emmanuel K. Dogbevi