Bank of Ghana Governor Johnson Pandit Asiama has defended the decision to reduce the Policy Rate, saying the move was intended to preserve stability as global oil prices increased and domestic price pressures persisted.
Dr Asiama made the comments on Friday, 6 November 2026, when he appeared before Parliament’s Committee on Economy and Development to brief lawmakers on monetary policy and macroeconomic developments during the first half of 2026.
The Policy Rate was reduced from 18.0 per cent to 14.0 per cent through decisions taken in January and March. It was then maintained at 14.0 per cent in May, July and September.
Providing an update on economic growth and inflation, Dr Asiama said real GDP expanded by 6.4 per cent in the first quarter of 2026.
Inflation fell to 3.2 per cent in March before rising to 5.3 per cent in June. Despite that increase, it remained below the Bank of Ghana’s target band of 6-10 per cent.
Borrowing conditions also eased during the period. The average lending rate dropped from 27.0 per cent to 15.6 per cent, while credit to the private sector increased by 41.2 per cent.
Ghana’s external position strengthened, with the country recording a trade surplus of US$8.81 billion and a current account surplus of US$5.1 billion.
Foreign exchange reserves stood at US$12.94 billion, providing the equivalent of five months of import cover.
The banking sector recorded an increase in total assets, which rose by 30.7 per cent to GH¢502.4 billion.
The sector’s Capital Adequacy Ratio was 20.4 per cent, while the proportion of non-performing loans fell from 23.1 per cent to 16.1 per cent.
Dr Asiama also set out several reforms being pursued by the central bank. They include a uniform Cash Reserve Ratio of 20 per cent and a transparent, rules-based framework for foreign exchange intervention.
Another initiative is the Ghana Accelerated National Reserve Accumulation Programme (GANRAP), which aims to increase reserves to the equivalent of 15 months of import cover by 2028.
The Governor reaffirmed the Bank of Ghana’s commitment to maintaining price stability and operating with transparency and accountability to Parliament and the Ghanaian people.
