Ghana's average lending rates have significantly decreased to 15.6% from 27.0%. This reduction has directly contributed to a sharp increase in private sector credit growth.
Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana (BoG), announced this development at the 131st Monetary Policy Committee (MPC) press conference in Accra on July 22. He stated that lower borrowing costs and stronger demand for credit drove private sector credit growth to 41.2% in June 2026. This represents a substantial increase from the 8.6% recorded in June 2025.
This positive trend reflects a broader narrative of economic resilience in Ghana. The banking sector has shown robust performance, supported by strong asset growth, improved solvency, and better asset quality. The government's cash-based fiscal operations in the first quarter of the year also demonstrated prudent expenditure management. This led to fiscal balances exceeding programme targets, even with some revenue shortfalls.
Dr. Asiama highlighted the banking sector's continued resilience. He noted its robust performance in June 2026, underpinned by strong asset growth and improved asset quality. The Governor also mentioned Ghana's strong external sector performance in the first half of 2026, driven by robust export earnings. However, the country's import bill rose sharply due to higher energy prices and related costs from the Middle East conflict.
The decline in lending rates is crucial for Ghana's economic expansion. Lower borrowing costs encourage businesses to invest and expand, creating jobs and stimulating economic activity. This move by the BoG aligns with efforts to foster a more conducive environment for private sector development. It is a key indicator of the central bank's monetary policy effectiveness.
Looking ahead, the sustained fall in lending rates could further boost economic growth and stability. Businesses will likely respond to cheaper credit by increasing production and innovation. Policymakers will closely monitor inflation and the cedi's stability. The cedi cumulatively depreciated by 9.5% against the US dollar as of July 17, 2026, despite a recent recovery. This currency performance remains a critical factor for import costs and overall economic health.