The Bank of Ghana (BoG) is calling on commercial banks to increase lending to small and medium-sized enterprises (SMEs) and the real sector, following the recent policy rate cut to 18%.
The latest 350 basis points cut, announced in November brings the cumulative reduction in the benchmark Monetary Policy Rate since July to 1,000 basis points, down from 28%.prior to the start of the sharpest monetary easing to date.
The BoG Governor Dr. Johnson Asiama emphasized that easing monetary conditions should translate into increased credit for productive sectors, stimulating growth, creating jobs, and supporting Ghana’s recovery.
“SMEs are the backbone of Ghana’s economy, driving employment and value creation,” Dr. Asiama said while speaking at an engagement with Chief Executive Officers of commercial banks last week.
“Banks must support the real sector by extending credit to productive enterprises, especially SMEs, and drive innovation that enhances financial access and inclusion.”
The central bank encourages financial institutions to develop innovative products and leverage digital technologies to reach underserved populations, stressing that inclusive finance is key to broad-based economic development.
Meanwhile, Dr. Asiama expressed confidence that stronger collaboration between the central bank and commercial banks would accelerate growth, boost private sector activity, and strengthen the economy’s resilience.
By Adnan Adams Mohammed
