Business News of Monday, 13 September 2021Source: www.ghanaweb.com• The average lending rates could reduce from 15 to 10%• This is according to the Chief Executive of the Ghana Bankers AssociationThe reduction however is based on current economic fundamentals and indicators improvingThe Ghana Bankers Association has estimated that the average lending rates of banks could reduce significantly from 15 to 10 percent. According to Chief Executive of the association, John Awuah, the drop will be based on current economic fundamentals and indicators improving. But John Awuah believes the call is counterproductive as the lending rates is often determined by market fundamentals. “You can sight the example that we have seen in Africa where Kenya after three unsuccessful attempts at introducing interest rates cap, it finally introduced caps on interest rates in 2016, only to make a U-turn in 2019 going back to free-market-determining lending rates. He added that “as a country, we should all rally behind policymakers in their efforts towards a move to lower market interest regime.
