Borrowing costs could fall to 10% by end 2026 - BoG Governor
Ghana’s borrowing costs could drop faster than expected, with lending rates potentially falling below 10 percent by late 2025. The Bank of Ghana has made steady progress in stabilising the economy, thanks to recent reforms and improved financial oversight. Governor Dr Johnson Pandit Asiama now sees this target within reach sooner than originally planned.
The central bank has strengthened its governance and operational independence through new legislative changes. These reforms aim to boost efficiency, tighten supervision, and invest in staff training. A key achievement in 2025 was preventing financial instability by addressing economic pressures before they worsened.
The current Ghana Reference Rate (GRR), the lowest benchmark for loans, stands at around 15 percent. However, falling inflation and a more stable currency have set the stage for lower borrowing costs. The Bank of Ghana now projects lending rates to hit 10 percent by the end of 2025, a year ahead of earlier forecasts.
Additional measures, such as the Virtual Asset Service Providers law, have also brought crypto-related activities under regulation. Despite these advances, Ghana still faces risks from global shocks, including geopolitical tensions and unpredictable trade conditions.
The Bank of Ghana’s reforms and tighter monetary policies have set the foundation for reduced lending rates. If current trends hold, businesses and households could see borrowing costs drop to around 10 percent by the close of next year. This shift would mark a significant improvement in the country’s economic stability.
