Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, aims to achieve an average lending rate of 10% by the end of his tenure. He reiterated this goal during the 127th Monetary Policy Committee (MPC) press conference in Accra on November 26, 2025, noting progress from 32% to 21% currently.
Progress on Interest Rates
Dr Asiama highlighted declines aligned with the Monetary Policy Rate reduction, including the interbank weighted average rate dropping to 21% in October 2025 from 27.7% the previous year, and the 91-day benchmark rate easing to 10.6% from 25.8%. Average bank lending rates fell to 22.2% from 30.5% in the same period, boosting private sector credit growth from a 7.1% contraction in May 2025 to 5.4% expansion by October.
MPC Policy Decision
The MPC cut the policy rate by 350 basis points to 18% from 21.5%, reflecting improved macroeconomic conditions like declining inflation, fiscal tightening, and reserve buildup for exchange rate stability. The BoG projects stable inflation near the target into early 2026, allowing high real rates to support growth recovery. The next MPC meeting is set for January 26-28, 2026.
Story by: Mercy Addai Turkson #ahotoronline.com