The Bank of Ghana (BoG) has announced a major reform targeting the Ghana Reference Rate (GRR) as part of efforts to bring down lending rates to 10 percent over the next four years. This ambitious move, unveiled by Governor Dr. Johnson Pandit Asiama, reflects the central bank’s commitment to correcting systemic inefficiencies that make borrowing costly for businesses and individuals alike.
Dr. Asiama made the announcement at the launch of the Ghanaian Banker Magazine and the new initiatives from the Chartered Institute of Bankers (CIB) Ghana. He stressed that achieving lower lending rates is tied to fixing structural challenges in the credit system, which currently hinder private sector expansion and economic inclusion. These reforms aim to create a more competitive and accessible financial environment.
The central bank has already begun work through a dedicated committee focused on redesigning the GRR framework. This benchmark rate, used to determine lending terms in the country, will be recalibrated to more accurately reflect real market conditions and risk. The hope is that a transparent and responsive reference rate will force banks to adjust pricing in favor of borrowers.
In addition to rate recalibration, the BoG is also pushing for stronger regulatory oversight and better market discipline. These complementary measures are expected to reduce arbitrary lending margins and align interest rates more closely with economic fundamentals. Such improvements, the governor believes, are critical for unlocking affordable finance to fuel private sector innovation and job creation.
Despite skepticism around the feasibility of sub-10% lending rates, Dr. Asiama remains confident that the reforms under way will deliver lasting impact. “There were skeptics when I recently declared my vision,” he said, “but I’m happy to confirm that a committee is working actively to lower the benchmark for lending significantly.” The initiative marks a pivotal step in Ghana’s financial sector transformation agenda.
Source: Citi newsroom