Lower Rates Spur Banks to Offer Loans – BoG Governor
By Praisebell Rosemond Larbi
Commercial banks in Ghana are increasingly reaching out to customers to offer loans, a development the Bank of Ghana (BoG) says reflects easing interest rates, improving liquidity conditions and renewed confidence within the banking sector, following recent monetary policy easing.
The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, disclosed this at the 128th Monetary Policy Committee (MPC) press briefing held in Accra on Wednesday, January 28, 2026, noting that lenders are no longer waiting passively for borrowers but are proactively courting clients with more competitive credit offers.
“Banks are beginning to call clients if they need loans,” the Governor revealed, underscoring a clear shift in lending behaviour across the sector.
Dr. Asiama described the development as a strong signal of strengthening bank balance sheets, improved liquidity buffers and growing risk appetite, after a prolonged period of tight credit conditions driven by high inflation, elevated interest rates and macroeconomic uncertainty.
“Someone told me this morning that his bank called him to come for a loan at a 15.0 per cent per annum rate,” he added, highlighting how sharply lending conditions have begun to ease.
The Governor’s remarks followed the Bank of Ghana’s decision to cut the Monetary Policy Rate (MPR) by 250 basis points, from 18.0 per cent to 15.5 per cent, marking the Central Bank’s first policy decision for 2026. The move builds on an earlier and more aggressive 350-basis-point cut in November 2025, when the policy rate was reduced from 21.5 per cent to 18.0 per cent amid easing inflationary pressures and improving macroeconomic indicators.
According to Dr. Asiama, the MPC’s decision was informed by forward-looking inflation forecasts, survey-based expectations and improving domestic macroeconomic fundamentals, which suggest that headline inflation is likely to remain within the medium-term target path.
He acknowledged, however, that risks remain, particularly from utility price adjustments, food price pressures and volatility in global commodity markets, but stressed that overall conditions support a gradual normalisation of monetary policy.
“GDP growth is expected to remain strong in 2026, with the output gap narrowing. While this could introduce moderate demand-side pressures, monetary conditions remain appropriately tight relative to prevailing inflation dynamics,” the Governor noted.
Dr. Asiama emphasised that the rate cut reflects the Central Bank’s commitment to supporting economic recovery, private sector credit growth and investment, while maintaining vigilance over price stability and financial sector soundness.
“Sustaining Ghana’s macroeconomic gains will hinge on disciplined fiscal policy, strong coordination between monetary and fiscal authorities, and targeted interventions in agriculture to contain food inflation, even as we remain alert to heightened geopolitical risks,” he said.
With lending rates beginning to ease and banks showing greater willingness to extend credit, expectations are rising that private sector activity will pick up in the months ahead, supporting business expansion, consumer spending and job creation, and reinforcing Ghana’s broader economic recovery as the country enters 2026.
