Policy rate cut must benefit real sector – BoG Governor tells banks
Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has called on commercial banks to step up lending to the real sector of the economy following the recent reduction in the policy rate to 18 percent.
Addressing Chief Executive Officers of commercial banks at a high-level engagement, Dr. Asiama stressed that the easing of monetary policy must translate into tangible support for productive sectors, particularly small and medium-sized enterprises (SMEs).
According to him, SMEs remain the backbone of Ghana’s economy, contributing significantly to employment creation, innovation and value addition. However, access to affordable credit continues to limit their growth and expansion.
Dr. Asiama urged banks to take advantage of the lower policy rate to expand financing to businesses that drive economic activity, noting that increased lending to the real sector is critical to sustaining the country’s economic recovery.
“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 stated.
The BoG Governor further encouraged financial institutions to develop innovative financial products and leverage digital technologies to reach underserved populations, emphasising that financial inclusion is key to achieving broad-based economic growth.
He explained that the central bank’s recent policy actions are aimed at creating a more favourable environment for lending and investment, and called on banks to ensure that these measures positively impact businesses and households.
Dr. Asiama expressed confidence that closer collaboration between the Bank of Ghana and commercial banks would accelerate economic growth, boost private sector activity and strengthen the overall resilience of the economy.
