Lending Rate Drops to 15.9% as Private Sector Credit Surges-BOG
The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, says the easing of domestic financial conditions continues to support the transmission of monetary policy across various market segments, particularly the credit market.
He said the average lending rate in the banking sector declined significantly to 15.9 per cent in August 2026, down from 24.2 per cent recorded during the same period in 2025.
Dr Asiama attributed the decline, together with an easing in banks’ credit stance and a recovery in credit demand, to the strong rebound in private sector credit.
He made the remarks during a post-132nd Monetary Policy Committee (MPC) meeting with Chief Executive Officers of banks in Accra on Tuesday.
According to him, credit to the private sector grew by 35.5 per cent in August 2026, compared with 13.3 per cent a year earlier.
In real terms, private sector credit growth stood at 29.0 per cent, compared with just 1.7 per cent over the same period in 2025.
Dr Asiama said he was encouraged by the continued resilience of the banking sector, noting that total banking sector assets had increased on the back of strong deposit mobilisation and growth in other funding sources.
He said the sector remained well-capitalised, while asset quality had also improved.
“These are positive developments and reflect the strengthening of the sector as well as the collective efforts of banks to improve their balance sheets and support economic activity,” he said.
The BoG Governor also said developments in the external sector had continued to provide an important source of resilience for the economy.
He noted that the country’s trade surplus increased to US$8.85 billion in the first eight months of 2026, up from US$6.69 billion recorded during the corresponding period of 2025.
Dr Asiama added that Ghana’s gross international reserves stood at US$12.0 billion, equivalent to 4.5 months of import cover, as of September 22, 2026.
He said the reserve position continued to benefit from improved gold export receipts, despite elevated external sector payments.
By Esther Padmore Amonoo
