Borrowers to see relief as Ghana’s lending benchmark falls again
Ghana’s benchmark lending rate has fallen to 17.86% in October, down from 19.86% in September, according to the Ghana Association of Banks (GAB).
The two-percentage-point drop in the Ghana Reference Rate (GRR) follows the Bank of Ghana’s aggressive 350-basis-point policy rate cut in September, which lowered the monetary policy rate to 21.5%.
The reduction is expected to ease lending and borrowing costs across the banking sector.
At the start of the year, the GRR stood at 29.72%, edging up slightly to 29.96% in February before steadily declining over the past six months to 19.67% in August.
Lending rates to drop in October after policy rate cut – BoG
Industry analysts have linked the latest cut to a consistent decline in key economic indicators such as inflation, treasury bill yields, and, most notably, the Bank of Ghana’s policy rate, which has been slashed by over 600 basis points to 21.5%.
According to the Bank of Ghana’s recent Monetary Policy Report, average lending rates have eased from 26.6% to 24.2%, while yields on money market instruments are also trending downward.
For instance, the 91-day treasury bill rate fell from 13.4% at the end of July 2025 to 10.3% in August.
The cut in the GRR could provide relief for businesses with variable-rate loans, which may be reviewed in line with the decline. New borrowers are also expected to benefit from lower lending costs as commercial banks adjust their rates.
The GRR, introduced in 2017 by the Bank of Ghana and GAB, was designed to improve transparency in loan pricing and guide banks in setting interest rates.
The maiden rate was pegged at 16.82% in April 2017.
SP/MA
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