Bank of Ghana reports average lending rates dropped to 15.7%

Ghana’s central bank has recorded a significant reduction in the cost of borrowing, with average lending rates falling from 30.25% in December 2024 to 15.7% by September 2026. Bank of Ghana Governor, Dr. Johnson Pandit Asiama, announced these figures, noting that the decline reflects enhanced macroeconomic stability and favorable financing conditions for the private sector. This shift has allowed businesses to access credit more affordably, supporting broader economic activity across various industries.

The reduction in interest rates has directly contributed to a 26.4% surge in private sector credit growth. Dr. Asiama attributed this positive trajectory to the country’s disciplined fiscal environment, highlighted by 13 consecutive months of single-digit inflation. According to the Governor, the resilience of the banking sector has played a crucial role in maintaining this stability and ensuring that credit remains accessible to businesses despite evolving market pressures.

Expanding financial inclusion remains a core objective for the Bank of Ghana as it seeks to sustain this growth. Dr. Asiama emphasized the importance of reaching underserved populations to ensure they are not left out of the credit market. He specifically identified Ghana’s youth as a demographic with immense potential for innovation and entrepreneurship, provided they have the necessary financial support and resources to develop their ideas effectively.

To prepare for the future, the central bank is currently developing a new directive to regulate the use of artificial intelligence within the financial services industry. This move is intended to foster innovation while managing the inherent risks associated with new technologies. Additionally, Dr. Asiama stressed that accurate and reliable statistics will continue to be the foundation for sound monetary policy and effective financial regulation as the Bank of Ghana monitors the impact of these lower lending rates on the broader economy.