{"id":95587,"date":"2025-09-24T17:37:18","date_gmt":"2025-09-24T17:37:18","guid":{"rendered":"https:\/\/sotnews.agency\/?p=95587"},"modified":"2025-09-24T17:37:18","modified_gmt":"2025-09-24T17:37:18","slug":"lending-rates-to-fall-to-sub-20-levels-in-2025","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=95587","title":{"rendered":"Lending rates to fall to sub-20% levels in 2025"},"content":{"rendered":"
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Lending rates are expected to drop from significant highs of 28% to sub-20% levels on average in 2025.<\/p>\n

This is due to a dovish monetary policy environment brewing in the second half of 2025. \u00a0<\/p>\n

According to Databank Research, it believes a steady disinflation trend towards the Bank of Ghana\u2019s target band of 8% \u00b1 200 basis points will most likely trigger a 200 basis points cut in November 2025.<\/p>\n

It maintained its 12% \u00b1 200 basis points inflation target, with a bias towards the lower bound of 10%. \u201cEasing international crude oil prices, a relatively stable cedi, and improved supply of key staples during quarter 3\u2019s peak harvest season are expected to reinforce disinflationary pressures, all things being equal\u201d, it pointed out.<\/p>\n

Additionally, it said further cuts in the benchmark rate are expected to anchor the Ghana Reference Rate below 19% by year-end, improving borrowing costs and stimulating economic activity, with the Composite Index of Economic Activity (CIEA) projected to rise to 2.5% from 1.5% in 2024.<\/p>\n

It also expects only a modest decline in the Non-Performing Loan ratio from 23% to 21%, as legacy high-interest loans continue to constrain repayment capacity in the near term.<\/p>\n

However, sustained monetary easing and gradual income recovery could support asset quality, further strengthening banks\u2019 financial soundness indicators.<\/p>\n<\/div>\n

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\"LendingLending rates are expected to drop from significant highs of 28% to sub-20% levels on average in 2025. This is due to a dovish monetary policy environment brewing in the second half of 2025. \u00a0 According to Databank Research, it believes a steady disinflation trend towards the Bank of Ghana\u2019s target band of 8% \u00b1 [\u2026]<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1904,12,5734,2529,9174,3955,10,9],"tags":[],"class_list":["post-95587","post","type-post","status-publish","format-standard","hentry","category-banking-and-finance","category-business","category-databank-research","category-inflation","category-lending-rates","category-monetary-policy","category-politics","category-popular"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/95587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=95587"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/95587\/revisions"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=95587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=95587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=95587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}