The Association of Ghana Industries (AGI), is calling for a reduction in the Central Bank’s Monetary Policy Rate (MPR), from the current 14.5 per cent to possible a single digit.
Speaking to norvanreports, Vice President of the AGI in charge of Small and Medium Enterprises (SMEs), Humphrey Ayim-Darkeh, posited that a reduction in the policy rate to a single digit will enhance the competitiveness of small and medium scale Ghanaian businesses to compete with their counterparts on the continent.
He made the assertion while explaining to norvanreports how low interest rates on funding can help small businesses compete in the era of the AfCFTA which kick-starts January next year.
“Given the recent financial reforms it is our wish to see the policy rate reduced to a single digit so small businesses can compete fairly with businesses in the francophone countries as well as their counterparts in the European countries. A single digit policy rate becomes the basis of cost of funding being reasonsoable for small and medium businesses to build on their managerial capacity,” noted.
The Bank of Ghana’s Monetary Policy Committee (MPC) is expected to commence it’s sitting this week to come out with a new policy rate for the next two months.
With inflation rate falling to 10.1 per cent in October, it is expected that there will be a possible reduction in the Bank of Ghana’s prime rate.
