Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has assured that the central bank is committed to driving down interest rates.
He added that the BoG is also focused on maintaining a stable exchange rate environment to support business growth.
He said that high interest rates in recent years have been detrimental to the economy and private-sector expansion.
The Governor made the remarks during an engagement with businesses and banks on the sidelines of the Kwahu Business Forum 2026.
Dr Asiama noted that borrowing rates above 30 per cent in the past were unsustainable.
“That level of borrowing is not good, and there is no way these businesses can repay.”
He linked the high cost of credit to rising non-performing loans in the banking sector.
“It is therefore not surprising that we have seen these high non-performing loans from these high interest rates in the past,” he added.
Recent data from commercial banks show a significant drop in lending rates, from over 22 per cent last year to about 12 per cent currently.
The Ghana Reference Rate for April 2026 also declined to 10 per cent, down from 11.7 per cent in March.
The Governor further expressed concern about weak private-sector lending relative to other African economies.
“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 said.
He stressed that strengthening banks will be key to improving 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 that his goal is to see lending rates fall even further.
“That is my prayer every morning, that rates should drop 10 per cent below.”
He said the Bank of Ghana is now focused on sustaining recent economic gains.
“Stability is good, but the next step now is to strengthen the market and the health of the commercial banks in the country,” he added.
