BoG urges Banks to Channel policy rate cut into real sector lending

The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has called on commercial banks to increase credit support for the real sector, with particular emphasis on Small and Medium-Sized Enterprises (SMEs), following the recent policy rate cut.

On November 24, 2025, the Bank of Ghana’s Monetary Policy Committee (MPC) reduced the policy rate by 350 basis points, lowering it from 21.5% to 18% after a majority vote by its members.

Speaking at the Post-MPC Engagement with Heads of Banks on December 18, 2025, Dr. Asiama stressed that the reduction in the policy rate should be translated into more accessible lending for businesses, as part of efforts to drive Ghana’s economic transformation.

“Banks must support the real sector by extending credit to productive enterprises, especially SMEs, and also drive innovation that enhances financial access and inclusion across the economy,” he said, noting that SMEs are the backbone of every economy and crucial for job creation and entrepreneurship development.

Dr. Asiama further reaffirmed the Bank of Ghana’s commitment to fostering a conducive environment for lending and investment, urging banks to implement measures that have a tangible impact on businesses.

“Let us turn this recovery into a financial system that is both stable and catalytic in shaping Ghana’s prosperity,” he added, highlighting the importance of strategic interventions in strengthening the country’s economic growth. Read the Governor of the Bank of Ghana's full speech below: