Industry Voices Concern Over Tight Monetary Policy and High Borrowing Costs
Business leaders have expressed concern that continued tight monetary policy could further slow economic activity, warning that high borrowing costs are already limiting private-sector investment and growth.
The central bank has indicated its commitment to maintaining measures aimed at controlling inflation, following a recent increase in the policy rate. However, industry representatives argue that elevated interest rates are making access to credit more difficult for businesses.
Recent economic data showed a sharp slowdown in private-sector borrowing, reflecting weaker demand for bank financing amid rising production costs and economic uncertainty.
Manufacturers and exporters say expensive financing, coupled with high energy prices, has increased operating costs and reduced competitiveness in international markets. They warn that sustained financial pressure could hinder industrial expansion, job creation and export growth.
Economists note that slowing domestic demand and declining purchasing power continue to challenge businesses, while overseas remittances remain a key source of support for economic activity and consumer spending.
Industry stakeholders have urged policymakers to balance inflation control efforts with measures that encourage investment, production and sustainable economic growth.
