Governor of the Bank of Ghana, Dr. Johnson Asiama, has outlined a vision of significantly cheaper credit as the next phase of Ghana’s economic recovery, pledging to cap lending rates at 10 percent by the end of his tenure.
Speaking during a courtesy visit by the Asantehene, Otumfuo Osei Tutu II, Dr. Asiama framed the push for lower lending rates as a transition from inflation control to growth support, particularly for businesses and households constrained by high borrowing costs.
Recent data from the Bank of Ghana’s Monetary Policy Report show early progress in this direction.
Average lending rates have declined from 26.6 percent to 24.2 percent, while money market yields have also softened.
The 91-day Treasury bill rate, for instance, dropped from 13.4 percent in July to 10.3 percent in August 2025, easing broader financial conditions.
Dr. Asiama stressed that the central bank’s strategy is to carefully balance the need to protect recent disinflation gains with the urgency of reviving credit expansion and economic activity.
“Market rates are responding to our policy direction, easing conditions while maintaining discipline. I have consistently said that my prayer and expectation is that by the end of my four-year term, lending rates should not exceed 10 percent,” he said.
Beyond domestic credit conditions, the Governor pointed to Ghana’s improving external buffers as a source of confidence.
He disclosed that gross international reserves have climbed above $13.8 billion, the highest level recorded in the country’s history, strengthening the cedi and reinforcing monetary stability.
Looking ahead, Dr. Asiama noted that sustained progress would depend on close coordination between the Bank of Ghana, the Ministry of Finance, and other economic institutions.
He said such collaboration is essential to ensure that easing monetary conditions translate into real-sector growth without undermining price stability.
The BoG Governor’s remarks signal a policy shift toward growth-focused monetary management, with affordable credit positioned as a key driver of investment, job creation, and long-term economic resilience.
