The Centre for Economic and Business Research (CEBRE), has suggested capping of interest rates as a way to compel banks to reduce their interests on loans.
In less than two years, the Bank of Ghana has responded to the calls for the policy rate to come down by reducing it from 26% in November 2016 to 17% in May 2018.
However, commercial banks are yet to fully respond to the reduction.
Speaking to 3FM Business, executive director of CEBRE Newlove Asamoah says capping will create a framework for banks to measure their lending rates.
Earlier in a statement, the Centre pointed out: “CEBRE is of the view that much as it believes in competition to bring the lending rate down, it has failed to do so and hence regulatory whip would be required to ensure that the banks do not enjoy ride on the back of the Ghanaian borrowers. Hence we are calling on the Central bank to adopt some measures to compel the banks to reduce their interest rates.”