Banks promise significant reduction in interest rates if BoG reviews CRR

Commercial banks in Ghana have pledged to reduce interest rates if the Bank of Ghana (BoG) revises the Cash Reserve Ratio (CRR), which has affected their liquidity and lending capacity.

Speaking on PM EXPRESS BUSINESS EDITION on February 27, 2025, First Bank Ghana’s CEO, Victor Yaw Asante, confirmed that banks have appealed to the BoG for adjustments.

In 2024, the BoG introduced a tiered CRR system to control liquidity: 25% for LDRs below 40%, 20% for 40%-55%, and 15% for above 55%.

Asante also noted that the cedi remains stable, urging policies to boost exports.

He attributed the reduced dollar demand to improved forex supply and suggested that lower treasury bill rates could further ease lending rates if sustained.