Economist expresses concern over Ghana’s inflation-interest rate gap

Ghana’s inflation slowdown to 3.8% has yet to translate into relief for businesses and households grappling with high borrowing costs, economist Professor Godfred Bokpin has warned.

Despite the Bank of Ghana’s policy rate cut to 15.5%, lending conditions remain tight, with the spread between inflation and key interest rates unusually wide.

Professor Bokpin says this gap is increasingly difficult to justify and could dampen private sector expansion and credit demand.

The disparity threatens to weaken growth prospects, Bokpin warns, calling for measures to address the issue.