The Central Bank has called on lenders to step up credit to productive sectors after slashing its benchmark interest rate by 300 basis points to 25%, in a shift toward growth-focused policy on the back of the cedi’s sharp rally and easing inflation.
Bank of Ghana Governor Johnson P. Asiama said the cedi’s more than 40% year-to-date appreciation and inflation’s drop to 12.1% in August 2025, the lowest since late 2021, have created the most stable macroeconomic backdrop in years. Foreign reserves rose to $11.1 billion, 4.8 months of import cover, by the end of June 2025.
“The task now is to translate stability into growth, to channel more credit into productive enterprises, support SMEs, finance critical infrastructure, and leverage digital innovations to reach underserved markets,” Asiama told banking chiefs in Accra.
The Monetary Policy Committee’s July decision marks a pivot from a defensive stance to one cautiously backing expansion, with scope for further easing if disinflation holds. The economy grew 5.3% in the first quarter, driven by agriculture and services, while non-oil GDP rose 6.8%. Business and consumer confidence have rebounded, the fiscal deficit narrowed to 0.7% of GDP in the first half, and non-performing loans in the banking system are falling.
The central bank will tighten oversight with new rules on credit risk management, liquidity buffers, large exposures, and foreign-exchange compliance. All banks will be required to submit weekly inward remittance reports, with penalties for violations.
Asiama said these reforms aim to align Ghana’s banking system with global standards while safeguarding against shocks. “The stability we enjoy today was hard-won,” he said. “It is now our joint responsibility to ensure it is not only preserved but leveraged for sustainable and inclusive prosperity.”
