Average lending rates fall consistently from January 2024 to 30.71% in July

According to recent data from the Bank of Ghana, average lending rates have consistently but slightly declined since the start of 2024. In January, the average lending rate stood at 32.94%, and it dropped to 32.77% in February and 32.35% by March. The downward trend continued with rates falling to 31.25% in April and further dipping to 31.10% in June. By July 2024, the average lending rate had eased to 30.71%, before experiencing a marginal uptick to 30.79% in August.

The Ghana Reference Rate (GRR) for August 2024 stood at 29.31%, slightly lower than June’s 29.44%, based on the Bank of Ghana’s Monetary Policy Committee (MPC) review.

As of today, September 27, 2024, the MPC is expected to announce its decision regarding the policy rate. In its July 2024 meeting, the Central Bank maintained the policy rate at 29%, pointing to inflation concerns driven by recent currency fluctuations, increased utility tariffs, and higher fuel prices.

Despite these trends, average lending rates vary across banks, with some institutions offering loans close to the Ghana Reference Rate, while others charge as much as 40%, depending on the customer’s risk profile.