Former Head of Research, at the Chartered Institute of Banking Charles Kwadwo Oppong says the government ought to tread cautiously in addressing the issue of high interest rate urging for a major stakeholders dialogue in the sector.

He argued the current rate reflects the economy in which we live in, adding, “we need a concerted approach; it calls for planning so that at both ends the customer and the banks will not suffer at the long run.” he told sit-in host Akwasi Nsiah on Anopa Kasapa on Kasapa 102.5 FM.

President Nana Addo Dankwa Akufo-Addo has asked the Governor of the Bank of Ghana (BoG) to take another look at the existing interest rates in the country.

He said a downward review of the interest rates was crucial in making the private sector competitive to help deliver a Ghana beyond aid.

Addressing the Chief Executive Officers’ (CEOs) Executive Forum in Accra yesterday, the President said: “I have requested the Governor of the Bank of Ghana to interrogate the issue of high interest rates in Ghana and how the problem can de addressed to enhance the competitiveness of the private sector.”

He said although the government had succeeded in stabilising the economy through improved micro-economic indicators over the last two years, high interest rates were still affecting the profitability of businesses.

The current interest rate by the Central Bank is 16 per cent but the President said it needed to be brought down further to create an enabling environment for businesses.

“I am committed to fiscal rectitude becoming an essential feature of our DNA in the management of our public finances and national economy,” President Akufo-Addo said.

But the Banking expert, Kwadwo Oppong said the country’s prevailing economic situation always corresponds with the Interest rate.

“All things being equal when the economy is doing well, banks will also perform well. Eventhough the economy is not doing bad now, there should be a gradual approach to address the high interest rate. The banking sector is now taking shape and so we should give ourselves some time. Don’t forget this is an interplay of demand and supply.”