The average lending rate of Ghana's banking sector experienced a significant decline to 15.9 percent in August 2026, compared to 24.2 percent recorded in the same period of 2025. This development was announced by Bank of Ghana Governor, Dr. Johnson Pandit Asiama, during a post 132nd Monetary Policy Committee (MPC) meeting with CEOs of banks in Accra. The decline in lending rates is attributed to the easing of domestic financial conditions, which has supported the transmission of monetary policy to various market segments.
According to Dr. Asiama, the decline in lending rates, coupled with an easing in banks' credit stance and a recovery in credit demand, has contributed to a strong rebound in private sector credit. As of August 2026, credit to the private sector grew by 35.5 percent, compared to 13.3 percent in the same period of 2025. In real terms, credit growth was 29.0 percent, up from 1.7 percent over the same period last year. This growth in credit is a positive indicator for the country's economic recovery.
Dr. Asiama expressed his satisfaction with the continued resilience of the banking sector. Total banking sector assets increased, driven by robust deposit mobilization and growth in other funding sources. The sector remains well-capitalized, with improved asset quality. These developments reflect the strengthening of the sector and the collective efforts of banks to improve their balance sheets and support economic activity.
The external sector has also contributed to the country's resilience. In the first eight months of 2026, the trade surplus increased to US$8.85 billion, up from US$6.69 billion in the same period of 2025. Gross International Reserves stood at US$12.0 billion, equivalent to 4.5 months of import cover, as of September 22, 2026. The reserve position has benefited from improved gold export receipts, despite elevated external sector payments.
The banking sector's performance is a positive indicator for Ghana's economic growth. The sector's ability to provide credit to the private sector and support economic activity is crucial for the country's development. The Bank of Ghana's monetary policy has played a significant role in reducing lending rates and stimulating credit growth.
The decline in lending rates is expected to have a positive impact on businesses and individuals seeking credit. Lower lending rates will reduce the cost of borrowing, making it easier for businesses to access credit and invest in their operations. This, in turn, is expected to boost economic growth and create jobs.
The Bank of Ghana will continue to monitor the banking sector's performance and implement policies to support economic growth. The central bank's efforts to maintain a stable financial system and promote economic development are crucial for Ghana's economic recovery. The country's economic prospects look positive, with the banking sector playing a critical role in supporting growth.
Key points
- The average lending rate in Ghana declined to 15.9% in August 2026, down from 24.2% in August 2025.
- Credit to the private sector grew by 35.5% in August 2026, compared to 13.3% in the same period of 2025.
- Ghana's trade surplus increased to US$8.85 billion in the first eight months of 2026, up from US$6.69 billion in the same period of 2025.
