{"id":149096,"date":"2025-09-20T10:33:10","date_gmt":"2025-09-20T10:33:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/149096\/"},"modified":"2025-09-20T10:33:10","modified_gmt":"2025-09-20T10:33:10","slug":"lending-rates-to-drop-in-october-after-policy-rate-cut","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/149096\/","title":{"rendered":"Lending rates to drop in October after policy rate cut"},"content":{"rendered":"<p class=\"article-image\"><a href=\"https:\/\/www.ghanaweb.com\/GhanaHomePage\/business\/Lending-rates-to-drop-in-October-after-policy-rate-cut-BoG-2001500?gallery=1\" rel=\"nofollow noopener\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/09\/32023146.295.jpg\" alt=\"MPC cut the policy rate to 21.5%\" title=\"MPC cut the policy rate to 21.5%\" width=\"295\" height=\"197\" \/> <\/a>MPC cut the policy rate to 21.5%<\/p>\n<p id=\"article-123\">The Bank of Ghana (BoG) has stated that its recent policy rate reduction is expected to start easing borrowing costs for households and businesses in the economy by October 2025. <\/p>\n<p>According to the Director of Research at the Central Bank, Dr Philip Abradu-Otoo, commercial banks are likely to adjust their lending rates downward following the Monetary Policy Committee\u2019s (MPC) decision to cut the benchmark rate to 21.5%.<\/p>\n<p>He explained this in an interview on JoyNews on September 18, 2025.<\/p>\n<p><a href=\"https:\/\/www.ghanaweb.com\/GhanaHomePage\/business\/BoG-explains-complex-factors-behind-policy-rate-decisions-2001437\" target=\"_blank\" rel=\"nofollow noopener\">BoG explains complex factors behind policy rate decisions<\/a> <\/p>\n<p>Dr Philip Abradu-Otoo pointed out that a similar rate cut earlier in July triggered a 2.5 percentage point reduction in interest rates, a sign that this latest move could bring even sharper relief for borrowers.<\/p>\n<p>\u201cWe anticipate some significant cuts in bank lending rates. The aim is to lower the cost of credit, support businesses, and ultimately benefit consumers,\u201d Dr Abradu-Otoo said.<\/p>\n<p>The Central Bank has faced criticisms from some analysts who argue the move could weaken inflation control efforts. <\/p>\n<p>Dr Abradu-Otoo defended the policy stance, saying Ghana\u2019s economic fundamentals provided the room to act.<\/p>\n<p>\u201cOur reserves remain robust, the cedi is stable, and growth is gathering pace. The data shows inflation will remain in single digits despite the policy rate adjustment,\u201d he stressed.<\/p>\n<p>The latest data from the BoG showed a decline in Non-Performing Loans (NPLs) to 20.8%, down from 24.8%.<\/p>\n<p>The bank said it is implementing measures to further strengthen the banking sector and improve credit delivery.<\/p>\n<p>\u201cWe are confident the NPL situation will improve in the coming months. The focus now is to channel more credit into productive sectors to drive growth,\u201d Dr Abradu-Otoo added.<\/p>\n<p>The BoG maintains that the policy rate cut is designed to reinforce recovery momentum, while ensuring financial stability.<\/p>\n<p>SSD\/AE<\/p>\n<p>Watch the latest edition of BizTech below:<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"MPC cut the policy rate to 21.5% The Bank of Ghana (BoG) has stated that its recent policy&hellip;\n","protected":false},"author":2,"featured_media":149097,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-149096","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/149096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=149096"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/149096\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/149097"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=149096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=149096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=149096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}