‘We’re listening’ – BoG assures traders of stability amid high interest rates

The Bank of Ghana (BoG) has assured the Ghana Union of Traders Association (GUTA) that it remains committed to creating a stable and supportive macroeconomic environment for businesses, despite current inflation-fighting policies that have pushed interest rates higher.

At a stakeholder meeting held at the Bank Square on April 4, 2025, Bank officials acknowledged traders’ concerns over how monetary policy decisions, particularly interest rate hikes, are affecting borrowing costs, operations, and overall business confidence.

“The Bank’s recent decisions are necessary to anchor inflation expectations and protect the purchasing power of households and businesses,” officials explained during a presentation to GUTA executives.

They stressed that while higher rates may pose short-term challenges, they are essential in preventing long-term instability.

The meeting was part of the Bank’s post-Monetary Policy Committee (MPC) engagement with key economic players.

Officials outlined the economic reasoning behind the latest policy rate adjustment, noting global financial pressures, exchange rate trends, and domestic inflation as critical factors.

In a move to deepen transparency, the Bank has, for the first time since adopting an inflation-targeting regime, publicly disclosed how each MPC member voted—aligning with global best practices to boost public trust and policy credibility.

Key Bank of Ghana directors present included Dr. Philip Abradu-Otoo (Director of Research), Bernard Otabil (Director of Communications), Ismail Adam (Acting Head of Banking Supervision), and Ernest Nii Sowah Ahulu (Financial Markets Department).

GUTA was led by its President, Dr. Joseph Obeng, along with other top executives.

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