The Bank of Ghana (BoG) expects lending rates in the country could drop to around 10 percent by the end of 2026, earlier than previously projected, as macroeconomic conditions improve, Governor Dr. Johnson Pandit Asiama has said.
Speaking at the central bank’s year-end Festival of Carols and Thanksgiving service, Dr. Asiama attributed the anticipated decline to a combination of disinflation, currency stability, and an improving growth outlook, even as global and domestic risks persist.
“I am on record as having said that I would like to see lending rates below 10 percent before the end of my term,” Dr. Asiama told staff.
“If there is one thing I pray for each morning, it is that our businesses can borrow below 10 percent, and that the youth, who are so innovative, can access affordable credit to pursue their ideas. We are already on course.”
The Governor noted that the Ghana Reference Rate (GRR), the benchmark for the lowest lending rates, is currently around 15 percent, a sharp decline from previous years.
“When we came in, lending rates were well beyond where they should be. Now, we are hopeful that by the end of next year, we could actually reach the 10 percent threshold originally envisaged for the next three years,” he said.
However, Dr. Asiama cautioned that Ghana remains vulnerable to external shocks as a small, open economy.
He pointed to geopolitical tensions, volatile trade conditions, and an uneven global recovery as factors that could impact inflation, food prices, and financial stability.
“Something remote can go wrong somewhere in the Middle East or the U.S., and it impacts us,” he noted. While fundamentals have improved, he stressed that risks have not disappeared.
The Governor attributed the progress made in 2025 to discipline and restraint, which helped the central bank and the wider economy avoid a repeat of the instability seen in 2022.
He explained that pressures were contained before escalating into crises, preserving trust and stabilising expectations.
Dr. Asiama also highlighted recent legislative reforms, including amendments to the Bank of Ghana Act, which strengthened governance, enhanced operational independence, and reduced the risk of crisis-driven liquidity interventions.
Additionally, the passage of the Virtual Asset Service Providers law has brought crypto-related activities under regulation.
Looking ahead, he said the Bank plans to continue reforms aimed at improving efficiency, deepening supervision, and investing in staff development through a new people strategy.
Plans are also underway to unlock value from idle real estate assets held by the Bank.
“Progress has given us room to move, but it also calls for vigilance. The work is not finished. This is just the beginning,” Dr. Asiama added.
