Ghana Vehicle Price Relief Expected Gradually After Rate Cut

News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://www.newsghana.com.gh/ghana-vehicle-price-relief-expected-gradually-after-rate-cut/

The Automobile Dealers Union of Ghana (ADUG) has welcomed the Bank of Ghana’s reduction of its policy rate from 28% to 25%, calling it a strategic move that could eventually lower vehicle prices and boost business confidence.

In a statement, the union praised the central bank and government for their commitment to easing borrowing costs and revitalizing economic sentiment, noting improved liquidity and lending conditions could stimulate investment in automotive retail and transport infrastructure.

ADUG emphasized that a strengthened auto sector could drive inclusive growth, job creation, and national mobility.

Despite this optimism, union president Kwaku Boateng clarified in an interview with Accra-based Citi FM that significant price reductions are unlikely before 2026.

He attributed the delay to existing inventory acquired under earlier high exchange rates, stressing that dealers cannot absorb losses by selling vehicles below cost.

While macroeconomic improvements including a stronger cedi are emerging, their translation to showroom prices will require time to filter through supply chains.

ADUG simultaneously urged financial institutions to align with the policy shift by reducing lending rates and offering flexible financing, particularly for SMEs in the auto sector.

The union called on banks to become “true partners in national development,” fostering innovation and productivity.

As Ghana’s economy continues recovering, sustained currency stability, consumer patience, and collaboration among banks, importers, and regulators will determine the policy’s success. Until then, consumers anticipating cheaper vehicles may face a prolonged wait.

News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://www.newsghana.com.gh/ghana-vehicle-price-relief-expected-gradually-after-rate-cut/

Read More