Borrowing costs in Ghana could decline to about 10 per cent by the end of 2026, earlier than initially projected, as macroeconomic conditions continue to improve, according to Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama.

Speaking at the central bank’s year-end festival of carols and thanksgiving service, Dr Asiama said easing inflation, a stable currency and a stronger growth outlook have created space for a faster reduction in lending rates, even as domestic and global risks persist.

“I have said before that I want to see lending rates below 10 per cent before the end of my term,” he told staff. “It is something I pray for daily—that businesses and our innovative young people can borrow at rates below 10 per cent. I believe we are already on course.”

Dr Asiama noted that the Ghana Reference Rate (GRR), the lowest benchmark for commercial lending, currently stands at about 15 per cent, a significant decline from levels recorded during the height of the economic adjustment period. Based on current trends, he said the economy could reach the 10 per cent lending rate threshold by the end of next year, rather than within the earlier three-year projection.

“When we assumed office, lending rates were far above where they should have been,” he said. “Now, we are hopeful that by the end of next year, we can achieve the 10 per cent target that was initially projected for the next three years.”

Despite the optimism, the BoG Governor cautioned that Ghana remains vulnerable to external shocks due to its position as a small, open economy. He cited geopolitical tensions, volatile global trade conditions and uneven economic recovery as risks that could quickly affect inflation, food prices and financial stability.

“Something remote can happen in the Middle East or the U.S. economy, and it immediately affects us,” he said, stressing that while economic fundamentals have improved, risks have not disappeared.

Dr Asiama attributed the gains made in 2025 to discipline and restraint, noting that the central bank and the broader economy avoided a repeat of the instability experienced in 2022. He said pressures were managed before escalating into full-blown crises, helping to stabilise expectations and preserve trust in key institutions.

He also highlighted recent legislative reforms, including amendments to the Bank of Ghana Act, which he said have strengthened governance, enhanced operational independence and reduced the likelihood of crisis-driven liquidity injections. According to him, these reforms are aimed at preventing a recurrence of conditions that led to the domestic debt exchange and pension losses in 2022.

Additionally, Dr Asiama pointed to the passage of the Virtual Asset Service Providers law, which brings cryptocurrency-related activities under regulation, allowing the central bank to manage emerging risks more effectively.

Looking ahead, the Bank of Ghana plans to deepen supervision, improve operational efficiency and invest in staff development through a new people strategy, while also unlocking value from idle real estate assets held by the Bank.

“Progress has given us room to move,” Dr Asiama said. “But it also demands vigilance. The work is not finished—this is only the beginning.”