The Bank of Ghana (BoG) is stepping up efforts to bring down lending rates, with Governor Dr. Johnson Asiama reaffirming his target of a 10 percent average rate before the end of his tenure. Speaking after the 127th Monetary Policy Committee (MPC) meeting, Dr. Asiama described the goal as “essential for unlocking stronger private-sector growth” and emphasized the progress already achieved this year.
Data from the central bank shows that the average lending rate in Ghana has dropped sharply from about 32 percent in January 2025 to 22.22 percent in October, marking a significant improvement for borrowers. Dr. Asiama acknowledged that while the current rates of 21–22 percent reflect progress, more work is needed to make loans more affordable and stimulate economic activity.
The governor highlighted that falling Treasury bill yields are likely to encourage commercial banks to lend more aggressively, which could drive further reductions in lending rates. He noted that lowering borrowing costs is not just a financial objective but a strategic move to strengthen businesses, create jobs, and accelerate economic growth across the country.
Month-by-month figures show a steady decline in lending rates, with minor fluctuations: 30.12% in February, 29.18% in March, 27.40% in April, and a slight rise to 27.00% in June before continuing downward. In parallel, the Ghana Reference Rate (GRR) fell from 29.72 percent in January to 17.86 percent in October 2025, reflecting improved liquidity and easing conditions in the money market.
Despite these gains, disparities remain among banks, with some lending as high as 39 percent depending on borrower risk profiles. Dr. Asiama stressed that narrowing this gap is crucial to sustaining Ghana’s economic recovery. “Lower rates mean stronger businesses, more jobs, and faster economic growth,” he said, emphasizing that achieving this milestone will be a key measure of his legacy.
source: citi newsroom