Ghana's average lending rate significantly decreased to 15.9% in August 2026. This marks a substantial drop from 24.2% recorded in August 2025, according to the Bank of Ghana (BoG).
The decline in borrowing costs has directly contributed to a robust surge in private sector credit, which grew by 35.5% in August 2026. This is a sharp increase from the 13.3% growth observed during the same period in 2025. Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana, stated that easing domestic financial conditions are supporting the transmission of monetary policy, particularly in the credit market.
This positive development reflects Ghana's ongoing efforts to stabilise its economy and foster growth. Lower lending rates make it cheaper for businesses to borrow money, encouraging investment and expansion. The significant increase in private sector credit, especially the 29.0% growth in real terms compared to 1.7% in 2025, indicates a renewed confidence among businesses and a willingness by banks to lend. This trend is crucial for job creation and overall economic prosperity in Ghana.
Governor Asiama made these remarks during a post-132nd Monetary Policy Committee (MPC) meeting with Chief Executive Officers of banks in Accra. He attributed the decline in lending rates, alongside an easing in banks’ credit stance and a recovery in credit demand, to the strong rebound in private sector credit. He also highlighted the continued resilience of the banking sector, noting that total banking sector assets increased due to strong deposit mobilisation and growth in other funding sources.
The improved financial conditions and credit growth are expected to further stimulate economic activity across various sectors. Businesses will find it easier to access capital, potentially leading to increased production and trade. This could also help to moderate inflation by boosting supply. The Bank of Ghana will likely continue to monitor these indicators closely, adjusting its monetary policy as needed to maintain stability and support sustainable growth.
Furthermore, external sector developments have also provided resilience for the Ghanaian economy. The country's trade surplus expanded to US$8.85 billion in the first eight months of 2026, up from US$6.69 billion in the corresponding period of 2025. Ghana's gross international reserves stood at US$12.0 billion as of September 22, 2026, equivalent to 4.5 months of import cover. This strong reserve position benefits from improved gold export receipts, despite elevated external sector payments, providing a buffer against external shocks and bolstering investor confidence.
The sustained health of the banking sector, characterised by strong capitalisation and improved asset quality, provides a solid foundation for these positive trends. These factors collectively suggest a more favourable economic environment for businesses and consumers. The government's fiscal policies and the central bank's monetary stance will remain critical in sustaining this momentum and ensuring broad-based economic benefits for all Ghanaians.