Ghana Reference Rate Falls to 10.06% in April as Lending Cost Pressures Ease

The Ghana Reference Rate (GRR) has declined to 10.06% for April 2026, down from 11.71% in March, continuing a steady downward trend in the benchmark used by banks to price loans.

According to a notice by the Ghana Association of Banks, the new rate took effect on April 1, 2026.

The GRR, which serves as the base rate for commercial lending, is calculated using a formula that factors in end-of-month Treasury bill rates, the average interbank rate, and the Monetary Policy Rate.

The latest drop reflects a sustained decline in short-term government security yields, with Treasury bill rates easing further alongside improved liquidity in the interbank market.

Over the past three months, the rate has steadily decreased from 14.58% in February to 11.71% in March, and now to 10.06% in April.

This downward movement creates room for banks to potentially lower lending rates. However, actual loan pricing will still depend on borrower risk profiles, banks’ operational costs, and internal credit assessments.

Any reduction in lending rates is expected to happen gradually, as banks adjust pricing based on their loan review cycles.

Despite the drop in the benchmark rate, average lending rates remain high at 19.7% as of February 2026, indicating a delay in passing on the benefits of lower funding costs to borrowers.

Overall, the continued decline in the GRR signals improving liquidity and easing conditions in the money market, which are gradually feeding into the broader credit environment.