The Bank of Ghana has announced plans to undertake a comprehensive reform of the Ghana Reference Rate (GRR), as part of a wider strategy to reduce lending rates to below 10% over the next four years.

Speaking at the launch of The Ghanaian Banker magazine and the new initiatives of the Chartered Institute of Bankers (CIB) Ghana on Thursday, June 19, Governor Dr. Johnson Pandit Asiama emphasized the need to eliminate structural inefficiencies in the credit market to build a more competitive and inclusive financial system.

Dr. Asiama noted that the persistently high cost of credit continues to hinder private sector growth, making it essential for the central bank to act decisively. He outlined that the reform agenda is focused on creating an environment where businesses can access financing without being burdened by excessive borrowing costs.

"A recalibrated reference rate, coupled with stronger regulatory oversight and better market discipline, will be key to driving down borrowing costs and strengthening the foundation for long-term economic growth," he stated.

Addressing doubts about the feasibility of his target, Dr. Asiama said, “There were skeptics when I recently declared my vision of seeing lending rates fall below 10 percent before the end of my four-year tenure. I’m happy to confirm that a dedicated committee is already working on reforms to the Ghana Reference Rate that will significantly lower the benchmark for lending.”