The Bank of Ghana (BoG) has unveiled plans to reform the Ghana Reference Rate (GRR) in a bid to reduce commercial lending rates to single digits within four years.
Governor Dr. Johnson Pandit Asiama announced the initiative during the launch of the Ghanaian Banker Magazine and new programs by the Chartered Institute of Bankers (CIB) in Accra, framing it as a critical step to address inefficiencies in the credit market.
The GRR, introduced in 2018 as a benchmark for loan pricing, has faced criticism for its sluggish response to declining inflation and monetary policy changes, creating a gap between central bank rates and actual lending costs. Dr. Asiama acknowledged skepticism about his goal of sub-10% lending rates but confirmed a committee is already working on the overhaul. “We are dismantling inefficiencies that have stood in the way of businesses for far too long,” he said.
The reforms aim to enhance transparency, improve credit pricing mechanisms, and foster a more inclusive financial system—key to unlocking private sector growth. Stakeholders, particularly small and medium-sized enterprises (SMEs), have welcomed the move, which could significantly improve access to affordable financing.
As Ghana seeks to bolster post-recovery economic resilience, the GRR revision may mark a pivotal shift in credit accessibility, aligning monetary policy with real-world lending practices to stimulate broader economic activity.
