In an engagement with the Ghana Union of Traders Association (GUTA), the Bank of Ghana (BoG) reaffirmed its commitment to preserving macroeconomic stability, even as traders express growing frustration over the impact of high interest rates on their operations. The meeting, held at the Bank Square, formed part of the BoG’s post-Monetary Policy Committee (MPC) outreach, which aims to deepen dialogue between economic stakeholders and the central bank. The Central Bank just increased its policy rate from 27% to 28%, sparking concerns within the business community.
Led by GUTA President Dr. Joseph Obeng, the association’s executives voiced concern that persistent high interest rates—driven by inflation-containment policies—are threatening business sustainability, dampening investment, and squeezing profitability across the commercial sector. Traders have argued that access to affordable credit has become increasingly difficult, worsening operational challenges.
Responding to these concerns, senior BoG officials, including Director of Research Dr. Philip Abradu-Otoo, Director of Communications Bernard Otabil, Acting Head of Banking Supervision Ismail Adam, and Financial Markets Department Head Ernest Nii Sowah Ahulu, offered a comprehensive explanation of the central bank’s policy choices.
“The pain businesses are experiencing is real, and we’re listening,” Dr. Abradu-Otoo acknowledged. “However, we must remain steadfast in our inflation-targeting commitment to ensure the purchasing power of both consumers and enterprises is not permanently compromised.”
He explained that external pressures—including tightening global financial conditions, exchange rate volatility, and high import costs—are fueling inflation, necessitating a tighter monetary stance. Though burdensome in the short term, higher interest rates, he said, are critical to restoring price stability and long-term economic confidence.
In a move to build public trust and enhance transparency, the BoG also announced that it has begun publishing the voting patterns of MPC members—marking the first time such disclosures have been made under Ghana’s inflation-targeting regime. This step, officials said, aligns with international central banking best practices and reinforces the independence of the BoG’s policy-making process.
While Dr. Obeng welcomed the Bank’s openness and technical clarifications, he underscored the urgent need to balance macroeconomic priorities with the survival of Ghana’s trading community.
“We understand the macroeconomic imperatives, but the livelihoods of thousands of traders depend on affordable financing. We must find a balance,” he said.
Both institutions agreed on the need for continued engagement and collaboration. The BoG assured GUTA that it values stakeholder input and will factor such perspectives into future policy decisions. GUTA, in turn, committed to maintaining a constructive dialogue with the central bank.
As Ghana grapples with both domestic and global economic challenges, the BoG emphasized that while policy measures may be tough in the near term, they are essential to laying the foundation for sustainable recovery. Through open dialogue and a consistent policy approach, the Bank is positioning itself not only as a regulator, but also as a committed partner in Ghana’s economic transformation.
