Economist Dr. Theo Acheampong has welcomed the decline in interest rates over the past year but insists banks are not reducing lending rates quickly enough to match the prevailing conditions.
To him, the current lending rates, which some business analysts and economists say are uncompetitive in the subregion, should be lower given the improved economic conditions.
In his analysis cited by The High Street Journal, Dr. Acheampong referenced that the Bank of Ghana has slashed its benchmark policy rate from 27% in January 2025 to 21.5% this September. This, he says, represents a massive 5.5 percentage point drop year-to-date.
In response, money market rates have tumbled. Interbank lending rates are now around 23%, down from highs above 30% last year. Treasury bill yields have also seen a dramatic correction as the 91-day bill, which stood at 30% in December 2024, has crashed to 10.3% as of August 2025.
Yields on longer-term government bonds have nearly halved, trading around 15–16%, compared with 26% at the start of the year.
Despite these improvements, the economist maintains that commercial bank lending rates, however, have proven stickier. While they have eased to about 24% in August 2025 from 30% a year ago, the pace of decline lags behind the central bank’s aggressive rate cuts.
“The Policy rate was cut from 27% in Jan-2025 to 25% in Jul-2025 and further to 21.5% a few days ago. That is a massive cumulative 550 basis point (5.5%) drop year-to-date. Correspondingly, interbank lending rates fell to about 23% in Aug. T-bill yields also plunged: for example, the 91-day bill has dropped from 30% in Dec-2024 to 10.3% in Aug-2025 while maturities on post-DDEP bond yields along 4 to 15yr windows are trading in the 15–16% zone compared with 26% in January 2025,” he analyzed.
The economist believes there is still room for lending rates to track lower, especially after the latest 150-basis point cut announced by the Bank of Ghana. He stressed that accelerating this adjustment could help unlock investment, spur job creation, and ease cost-of-living pressures.
“Interest rates are going down in line with the reduction in the policy rate, but not fast enough….. Lending rates eased to 24% (Aug) from 30% a year earlier. Room remains for lending rates to track lower with the latest policy cut,” he noted.
The stickiness, if persists, may signal that banks might be prioritizing margins over supporting the broader economy.
The analysis also indicates that the central bank has done its part by creating space and its now it’s up to the commercial banks to follow through and lower their rates to spur real sector growth.
Lower lending rates mean more affordable credit, stronger growth, and ultimately, a softer landing for an economy still recovering from recent shocks and that is what all businesses are expecting with the improved conditions.
