BoG rate cuts leave banks no choice but to lend – AGI President

President of the Association of Ghana Industries (AGI), Dr Humphrey Ayim-Darke, says banks are being nudged into lending as the Bank of Ghana continues to lower its policy rate.

Speaking on Joy News’ PM Business Edition, he said the recent 350 basis point cut to 21.5%, the second since July, has made it increasingly difficult for banks to hold back credit.

Dr Ayim-Darke added that falling Treasury bill rates are also influencing banks’ lending strategies, pushing them toward more active engagement with the market.

He said; “They (banks) have no other choice than to come to the market, because the lending T-bill rates are also another factor that is shaping their thoughts and their lending model, real banking is coming to the table, and we in the industry, space and business, believe that definitely it will trend downwards.”

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He however stated that the full benefits of lower rates will only be realized if regulators step up.

“We need regulatory bodies to support these gains. Their role is critical in ensuring the momentum isn’t derailed,” he warned.

On September 18, 2025, the Central Bank cut its monetary policy rate by 350 basis points to 21.5%.

The move was driven by sustained disinflation, robust economic growth, and improved external buffers.

Inflation, on the other hand has dropped sharply and is projected to hit the medium-term target by the end of 2025.

SA

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