BoG Lending Rate Drops to 15.6% as Private Sector Credit Surges 41.2%

The Bank of Ghana (BoG) has reported a significant improvement in credit conditions, with the average lending rate declining from 27 per cent to 15.6 per cent, while private sector credit expanded by 41.2 per cent.

The Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, disclosed this when he appeared before Parliament’s Committee on Economy and Development on Friday, November 6, 2026, to brief the committee on monetary policy and macroeconomic developments during the first half of the year.

He said the improvement in lending conditions formed part of broader developments in the economy, including economic growth, declining inflation and a strengthened external position.

On monetary policy, Dr Asiama said the Monetary Policy Committee reduced the policy rate from 18 per cent to 14 per cent in January and March 2026, before maintaining it at 14 per cent during its May, July and September meetings.

He explained that the decision to maintain the rate was intended to preserve stability amid rising global oil prices and domestic price pressures.

The Governor said real Gross Domestic Product (GDP) grew by 6.4 per cent in the first quarter of 2026, reflecting continued economic expansion.

Inflation, which declined to 3.2 per cent in March, subsequently increased to 5.3 per cent in June. However, it remained below the Bank’s medium-term target band of six to 10 per cent.

On the external sector, Dr Asiama reported that Ghana recorded a trade surplus of US$8.81 billion and a current account surplus of US$5.1 billion.

The country’s gross international reserves stood at US$12.94 billion, providing approximately five months of import cover.

He said the external sector performance reflected improvements in Ghana’s capacity to meet its international payment obligations and strengthen its reserve position.

The banking sector also recorded growth during the period, with total industry assets increasing by 30.7 per cent to GH¢502.4 billion.

The Governor said the sector’s Capital Adequacy Ratio stood at 20.4 per cent, while the non-performing loans ratio declined from 23.1 per cent to 16.1 per cent.

Dr Asiama further outlined a number of policy and institutional reforms being pursued by the Bank to strengthen monetary management and the country’s external position.

These include the introduction of a uniform Cash Reserve Ratio of 20 per cent and a transparent, rules-based framework for foreign exchange interventions.

He also highlighted the Ghana Accelerated National Reserve Accumulation Programme (GANRAP), which aims to increase the country’s import cover to 15 months by 2028.

The programme is expected to support the Bank’s efforts to build stronger external buffers and improve the country’s resilience against external shocks.

Dr Asiama reaffirmed the Bank’s commitment to maintaining price stability, promoting transparency in monetary policy decisions and remaining accountable to Parliament and the Ghanaian public.

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