BoG meets GUTA: Traders push back on interest rates as central bank defends inflation fight

The Bank of Ghana (BoG) met with the Ghana Union of Traders Association (GUTA) on Friday. The meeting took place at the Bank Square. It addressed concerns about rising interest rates and their impact on businesses.

This meeting was part of BoG’s broader engagement after its recent Monetary Policy Committee (MPC) session. The goal was to foster dialogue with the business sector amid tightening monetary policies.

The Bank acknowledged traders' frustrations over high borrowing costs. BoG assured GUTA of its commitment to a stable macroeconomic environment for long-term growth.

BoG explained that both external and domestic inflation pressures influenced its policy decisions. This includes raising interest rates to manage inflation expectations and protect purchasing power.

In its presentation, the central bank defended the rate hike as necessary. They stated it would curb inflation, which could harm business confidence and economic stability if unchecked.

While acknowledging short-term difficulties for businesses, BoG emphasized the importance of long-term economic health.

For the first time, MPC disclosed individual voting patterns of its members. This unprecedented move aims to enhance transparency in Ghana’s monetary policymaking.

The Bank believes this will build public confidence and help businesses make informed decisions.

Key BoG officials attended the meeting, including Dr. Philip Abradu-Otoo and Bernard Otabil. Other attendees included Ismail Adam and Mr. Ernest Nii Sowah Ahulu.

GUTA was represented by President Dr. Joseph Obeng and other executives, including Clement Boateng and Charles Gyan.