An economist, Peter Terkper has expressed concerns about Ghana’s high interest rates and inflation, highlighting their detrimental impact on the country’s macroeconomic stability and living standards.
He noted that with interest rates hovering around 35 per cent, accessing loans has become a challenge stifling businesses and individuals.
Mr. Terkper emphasised that rising inflation, static incomes and currency depreciation are key factors slowing down economic activities, worsening the cost of living and hindering the growth of small and medium-scale enterprises.
“If you look at the country’s economic growth for instance, the interest rate is high, imagine someone goes to the bank for a loan, they can pay up to 35- 40 per cent, but the question is that; how do you survive. When interest rates are high, it affects individuals negatively. This is how these things affect the economy at the grassroots level.
People spend a lot because once inflation is high, income is not increased,”
