Bank of Ghana Governor: Lower Lending Rates Boost Private Sector Credit
Dr Johnson Pandit Asiama, Governor of the Bank of Ghana, says the easing of domestic financial conditions is beginning to translate into stronger access to credit, with lending rates falling sharply and private sector borrowing picking up. Speaking at a meeting with bank CEOs in Accra after the 132nd Monetary Policy Committee meeting, he said the average lending rate had dropped from 24.2 per cent in August 2025 to 15.9 per cent in August 2026. As borrowing costs eased, banks also became more willing to lend, while demand for credit recovered, helping private sector credit growth accelerate to 35.5 per cent from 13.3 per cent a year earlier. In real terms, the growth reached 29.0 per cent, compared with just 1.7 per cent over the same period in 2025.
The stronger credit performance, Dr Asiama said, comes against the backdrop of a banking sector that continues to show resilience. He noted that total bank assets had expanded, supported by stronger deposit mobilisation and other sources of funding, while improved asset quality and solid capital positions provided further support for lending. The positive developments were also reflected in the external sector, where Ghana’s trade surplus widened to US$8.85 billion in the first eight months of 2026, from US$6.69 billion a year earlier. At the same time, gross international reserves reached US$12.0 billion as of September 22, equivalent to 4.5 months of import cover, with stronger gold export receipts helping to bolster the reserve position despite elevated external payments.
