The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has appealed to commercial banks to channel more credit to the real sector of the economy, particularly small and medium-sized enterprises (SMEs), following the recent reduction in the policy rate to 18 percent.

Speaking at an engagement with Chief Executive Officers of commercial banks, Dr. Asiama emphasized that the easing of monetary conditions must translate into increased lending to productive sectors to stimulate economic growth, create jobs and support Ghana’s ongoing recovery.

According to him, SMEs remain the backbone of the Ghanaian economy and play a critical role in employment generation and value creation.

However, limited access to affordable credit continues to constrain their growth. He therefore urged banks to take advantage of the lower policy rate to expand financing to these businesses.

“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,” Dr. Asiama stated.

The BoG Governor further encouraged financial institutions to develop innovative products and leverage digital technologies to reach underserved segments of the population, noting that inclusive finance is essential for broad-based economic development.

Dr. Asiama stressed that the central bank’s policy actions are aimed at creating a more supportive environment for lending and investment, and called on banks to play their part in ensuring that the measures have a meaningful impact on businesses and households.

He expressed confidence that stronger collaboration between the central bank and commercial banks would help accelerate growth, boost private sector activity and strengthen the overall resilience of the economy.