Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana (BoG), has reaffirmed the central bank’s commitment to driving down interest rates and maintaining exchange rate stability to support business expansion and economic recovery.
Speaking during an engagement with businesses and banks on the sidelines of the Kwahu Business Forum 2026, Dr. Asiama described high borrowing rates in recent years as detrimental to the economy and private-sector development.
“Borrowing rates above 30 per cent were unsustainable,” he said. “That level of borrowing is not good, and there is no way these businesses can repay.”
The Governor linked the previous high cost of credit to the rise in non-performing loans (NPLs) within the banking sector, noting that elevated interest rates had made loan repayment extremely challenging for many businesses.
Recent data from commercial banks indicate a significant easing in lending rates, which have fallen from over 22 per cent last year to around 12 per cent currently. The Ghana Reference Rate for April 2026 has also declined to 10.06 per cent, down from 11.71 per cent in March.
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Despite this progress, Dr. Asiama expressed concern over Ghana’s relatively weak private-sector lending compared to peer economies in Africa.
“If you look at total banking sector lending to the private sector in relation to our GDP, compared to our peers in Africa, Ghana has the lowest, and that is not good,” he stated.
He emphasised that strengthening commercial banks remains a priority for the central bank to improve credit flow to businesses.
“That is why we are focused on helping banks become stronger and more efficient to improve lending to the private sector,” Dr. Asiama added.
The Governor expressed his strong desire for even lower rates, saying his “prayer every morning” is to see lending rates drop by an additional 10 percentage points.
While acknowledging the importance of recent economic stability, he stressed that the next phase must focus on reinforcing the health and efficiency of commercial banks to sustain gains and stimulate stronger private-sector credit growth.
