The Bank of Ghana wants cheaper loans. It targets a 10% average lending rate. This goal was confirmed by Governor Dr. Johnson Asiama. He says it is crucial for growth. It will help private businesses expand. It also supports economic recovery.
Progress is already being made. Average bank lending rates are falling. They were about 32% at the start of the year. Now they are between 21% and 22%. This data comes from October 2025. The central bank’s reports confirm this trend.
The Ghana Reference Rate has also dropped. It fell from 29.72% in January. It reached 17.86% by October. This shows better liquidity in the market. It signals easier money market conditions. This pressure helps lower loan costs.
But the Governor says more work is needed. He highlighted a major disparity. Some banks lend near the reference rate. Others still charge rates as high as 39%. This depends on the borrower’s risk. The BoG wants to narrow this gap.
Governor Asiama strongly reaffirmed his target. He wants to see 10% average rates. He wants this by the end of his tenure. He said, “I still stand by that.” He wants to be judged by this goal. Lower rates mean stronger businesses. They create more new jobs. They lead to faster economic growth.
The central bank expects further progress. Falling government Treasury bill yields will help. This will push banks to lend more. They will lend to businesses and individuals. This should cause sharper rate declines. It will fuel stronger economic expansion.
