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May 20, 2026
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Policy rate cuts won’t spur growth without cheaper bank loans – Economist
Money
Policy
Growth
Key Points
- Economist Dr. Sajid Chaudhry argues that Bank of Ghana policy rate cuts will have limited impact on economic growth unless commercial banks also reduce lending rates.
- He noted commercial banks are slow to transmit rate cuts due to non-performing loans, exchange-rate instability, and macroeconomic uncertainty, maintaining wide net interest margins.
- Dr. Chaudhry's analysis from 2002-2024 shows a direct correlation between lower lending rates and higher GDP growth, while high interest rates weaken economic performance.
- He recommends the Central Bank adopt regulatory measures to encourage faster transmission of policy rate cuts to borrowers and improve deposit rates when monetary policy tightens.
- He also urged commercial banks to strengthen loan screening, businesses to improve productivity and repay loans, and the government to maintain macroeconomic stability.
Why This Matters
This analysis is crucial for Ghana as it identifies a key impediment to economic growth: the slow transmission of monetary policy. If commercial banks do not lower lending rates despite policy rate cuts, the private sector's access to affordable credit remains constrained, undermining efforts to stimulate economic activity and achieve broader development goals. Addressing this bottleneck is vital for the effectiveness of the Bank of Ghana's monetary policy and for fostering a more robust business environment.
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August 24, 2026
GoldBod denies GH¢1bn BoG overdraft claim, demands retraction and apology from Boako
- The Ghana Gold Board (GoldBod) has vehemently denied claims by MP Dr. Gideon Boako that it owes the Bank of Ghana (BoG) a GH¢1 billion overdraft.
- Dr. Boako, a Deputy Ranking Member on Parliament’s Finance Committee, questioned GoldBod's reported GH¢907 million profit, stating an outstanding overdraft would reflect a loss.
- GoldBod labeled Dr. Boako’s claim as “totally false,” a “deliberate and malicious smear campaign,” and demanded a retraction and apology.
- This dispute is set against a broader political and economic debate concerning GoldBod’s financial performance and the accounting treatment of GH¢22 billion losses from the Domestic Gold Purchase Programme (DGPP).
- GoldBod asserts it has never taken any loan, overdraft, or debt instrument from the Bank of Ghana or any financial institution since its establishment.
August 24, 2026
GoldBod losses remain key on Minority agenda as Parliament reconvenes – Afenyo-Markin
- The NPP Minority Leader, Alexander Afenyo-Markin, reaffirmed the caucus's commitment to investigate a reported US$1.7 billion loss linked to the Bank of Ghana’s Domestic Gold Purchase Programme and the Ghana Gold Board (GoldBod).
- This commitment was reiterated after Afenyo-Markin met with NPP flagbearer Dr Mahamudu Bawumia in Accra.
- Dr Bawumia commended the Minority Caucus for its accountability efforts and encouraged their continued work.
- The reported loss, equivalent to about 1.5% of Ghana’s GDP, will be a key issue for the Minority as Parliament reconvenes.
- The Minority is resolute in pursuing the matter to get answers for the Ghanaian public regarding the circumstances of the loss.
August 23, 2026
Why celebrate $2.62bn FDI while losing $1.7bn under the Domestic Gold Programme? IERPP asks
- The Institute of Economic Research and Public Policy (IERPP) welcomes Ghana's US$2.62 billion Foreign Direct Investment (FDI) as a sign of investor confidence.
- However, IERPP tempers this optimism with concern over an estimated GH¢22 billion (US$1.7 billion) loss from the Domestic Gold Purchase Program (DGPP).
- The DGPP loss is significant, equating to about 65 cents for every US$1 of FDI attracted, highlighting a major resource management issue.
- IERPP emphasizes that while FDI is crucial, it cannot substitute for prudent management and protection of existing public resources.
- The Institute calls for greater transparency, a clear breakdown of DGPP losses, and intense scrutiny from accountability institutions, Parliament, and civil society.