BoG to overhaul ‘Ghana Reference Rate’ in push for 10% lending target

The Bank of Ghana is set to undertake a major overhaul of the Ghana Reference Rate as part of broader reforms aimed at lowering lending rates to 10 percent over the next four years.

Governor, Dr. Johnson Pandit Asiama, speaking at the launch of the Ghanaian Banker Magazine and the New CIB Ghana Initiatives on Thursday, June 19, insisted that dismantling structural inefficiencies within the credit market is central to achieving a more competitive and inclusive financial system.

He noted that the high cost of credit continues to constrain private sector growth, and emphasized that the central bank’s reform agenda is designed to create room for expansion without pricing businesses out of access to finance.

The central bank believes a recalibrated reference rate, combined with enhanced regulatory oversight and improved market discipline, will help drive down borrowing costs and support long-term economic resilience.

“There were skeptics when I recently declared my vision of seeing lending rates down below 10 percent before the end of my four year tenure. I’m happy to declare that there’s a committee working to reform the Ghana reference rate which will clearly bring the benchmark for lending significantly down,” he said.