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Source: UTV
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The president is NOT SERIOUS He is the main cause that we have high interest rates in Ghana. There are 2 main reasons why we have high interest rates in Ghana. 1) Savings is low in Ghana. 2) The government is always borrows a large amount the little that is being saved. At average household can only save after they have paid for immediate basics such as food and rent. So, until we have cheaper housing and food we will have less disposable income and less to save in banks. The reason we have low savings is because rent and food is so high that the average household has little left after paying for food and rent. The solution is for the government to prioritise housing and food security by getting the best minds in agriculture and housing, and help them in large-scale housing and food sector development aimed at applying economies of scale and division of labor. We have to use local substitute building materials, agro-chemical, fertilizers, pesticides, food processing and preservation, irrigation, agric equipment, construction equipment, locally developed building materials etc. By providing large scale housing and agriculture using local skills and materials, we will see a reduction in the cost of food and rent without causing making farmers and home-builders poor. Once these two are done, rent and food will drop. With reduced cost of food and rent, disposable income will rise. People will have enough left over after paying rent and food to put in the banks. This will increase the savings in the banks. With more money saved in the banks, the interest rates (cost of borrowing money) will reduce. This is the only way we can reduce interest rates. We need the government to act with all relevant bodies to build up a strong local agriculture and housing industry which uses local ingenuity to provide the inputs and supply the products.