BoG Governor Clarifies 10% Lending Rate Is Not Official Policy

By Praisebell Rosemond Larbi

The Governor of the Bank of Ghana, Dr. Johnson Asiama, has moved to clear the air regarding public speculation that the central bank is officially targeting a 10 percent lending rate. He stressed that this figure represents a personal aspiration aimed at leaving a lasting legacy, and not a formal policy stance of the Bank of Ghana. At the same time, Dr. Asiama highlighted that lending rates are already trending downward, with commercial banks offering credit near 15 percent, signalling an easing of borrowing costs and a revival of credit activity across the financial sector.

Speaking at the Monetary Policy Committee (MPC) press briefing in Accra on Wednesday, Dr. Asiama explained that his aspiration for lower lending rates is grounded in his decades-long experience at the central bank. Having joined the Bank of Ghana in 1995, he has witnessed generations of borrowers face persistently high interest rates that have hindered private sector growth, discouraged investment, and constrained household access to finance. The governor noted that this experience has shaped his personal commitment to creating a more conducive credit environment in Ghana.

“Let me emphasise clearly: that is not an official commitment of the Bank of Ghana. It is my personal aspiration and a legacy I hope to leave. Lending rates have always been extremely high, and it is my personal wish to see them reset to more sustainable levels. But this should not be interpreted as a policy directive from the central bank,” he stated.

Despite clarifying the distinction between personal aspiration and official policy, Dr. Asiama pointed to encouraging signs that lending conditions are already improving. He shared an example of a bank proactively calling a customer to offer a loan at 15 percent, a sharp reduction from rates above 30 percent just a year ago. He explained that this reversal reflects a structural shift in the credit market, where banks are increasingly reaching out to borrowers rather than relying on customers to initiate loan requests.

“I must say that we are on course. This morning, I was told that a client was contacted by his bank and invited to apply for a loan at 15 percent. A year ago, loans of this nature were being offered at over 30 percent. The fact that banks are now actively calling clients to offer credit is a very strong signal that confidence is returning to the lending market and that interest rates are beginning to normalise,” the governor noted.

Dr. Asiama highlighted the potential benefits of lower lending rates, particularly for small businesses, traders, and professionals who have historically avoided bank loans due to prohibitive costs. Cheaper credit, he said, could allow businesses to invest in expansion, acquire new equipment, hire more staff, and ultimately drive economic growth. He also emphasised that improved access to finance could encourage entrepreneurship and stimulate activity in the informal and formal sectors alike.

The governor further cautioned that while a 10 percent lending rate remains a personal benchmark for the future, achieving such a rate would require continued macroeconomic stability, disciplined fiscal management, strong policy coordination, and improvements in banking sector efficiency. He stressed that these factors are critical to sustaining lower borrowing costs and ensuring that private sector growth is supported without compromising financial stability.

In closing, Dr. Asiama reiterated that while the 10 percent rate is not an official policy target, the downward trend in lending rates is real, tangible, and already benefiting businesses and consumers. He emphasised that the central bank is closely monitoring market developments and will continue to implement measures to ensure that credit remains accessible, affordable, and aligned with Ghana’s broader economic goals.

For borrowers, businesses, and investors, the message is clear: lending rates are falling, banks are actively offering credit, and the long-standing era of high-cost borrowing may finally be giving way to a more enabling financial environment that could support growth, investment, and job creation across the country.