The Ghana Reference Rate (GRR), the benchmark used by commercial banks to price loans, has dropped marginally from 10.61% in August to 10.18% in September 2026, signalling a continued easing of borrowing costs for variable-rate loan customers .
The latest figure represents a 0.43 percentage-point decline over the past month, calculated using the industry-approved formula and market data from industry players .
What Drove the Decline
The reduction was largely influenced by lower Treasury bill and interbank rates. The Treasury bill rate fell from 5.7881% to 4.8856%, while the interbank rate declined slightly from 10.23% to 10.20% .
The Bank of Ghana’s Monetary Policy Rate (MPR), another key component used in calculating the GRR, remained unchanged at 14% during the review period . The central bank has maintained this rate since its last cut in March 2026, citing the need to consolidate macroeconomic stability while monitoring global risks such as Middle East tensions and potential oil price shocks .
The GRR is calculated using these three variables – the 91-day Treasury bill rate, the interbank overnight rate, and the MPR – and serves as the base benchmark for pricing loans across the banking industry .
Potential Relief for Borrowers
The marginal decline could offer some relief to borrowers with variable-rate loan facilities, as lending costs continue to ease. Customers with fixed-rate loans, however, are unlikely to be affected by the latest reduction .
The development could also benefit new borrowers as banks compete to offer credit at lower rates. Average lending rates have fallen to around 15%, while some customers are reportedly accessing credit at rates between 11% and 12.5% . This reflects increased competition among banks and improved financing conditions for selected borrowers.
Broader Context: Mixed Movements Through 2026
The Ghana Reference Rate has recorded mixed movements throughout 2026, reflecting the volatility and gradual stabilisation of Ghana’s macroeconomic environment.
The benchmark stood at 15.68% in January 2026 before declining sharply to 11.71% in March and 10.06% in April . It eased further to 10.03% in May and 10.02% in June before rising to 10.59% in July. It increased further to 10.61% in August before falling to 10.18% in September .
This downward trajectory mirrors the central bank’s aggressive monetary easing cycle. The Bank of Ghana reduced its policy rate from 18% to 15.5% in January 2026, and then to 14% in March 2026 – a cumulative cut of 400 basis points over two months .
Persistent Gap Between GRR and Lending Rates
Despite the significant decline in the GRR, Ghana continues to record some of the highest lending rates in Africa. The African Development Bank’s African Economic Outlook 2026 report ranked Ghana as the African country with the highest lending rate despite the sharp reduction in its policy rate over the past year .
Data from the Bank of Ghana showed that the average lending rate stood at 16.33% in April 2026, down from 20.58% in January 2026, but still nearly 10 percentage points above the GRR .
Bank of Ghana officials have attributed this persistent gap to high non-performing loans (NPLs) and the risk profile of obligors, which continue to exert upward pressure on lending rates even as the benchmark declines . The central bank has acknowledged that while the GRR provides a transparent benchmark, banks incorporate risk premiums based on borrower creditworthiness, resulting in the wide differential.
Market Conditions Supporting the Trend
The decline in Treasury bill rates, which are a key component of the GRR, reflects strong investor demand for government securities. Recent auctions have been consistently oversubscribed, with the most recent one recording a 162.9% oversubscription rate .
In the latest auction, the 91-day bill yield declined by 39 basis points to 5.07%, while the 182-day bill yield fell by 19 basis points to 7.07% . The 364-day bill recorded the sharpest decline, with its yield dropping by 91 basis points to 11.59% . This strong demand and falling yields have helped pull down the GRR .
Historical Context
Introduced in 2017 by the Bank of Ghana in collaboration with the Ghana Association of Banks, the Ghana Reference Rate was designed to provide a transparent and uniform benchmark for determining lending rates across Ghana’s banking sector .
The rate has seen dramatic movement over the past two years, peaking at 29.96% in February 2025 before embarking on a sustained decline as the central bank tightened and then loosened monetary policy in response to inflation dynamics .
Outlook
With inflation trending towards the central bank’s medium-term target and Treasury bill yields continuing to compress, analysts expect the Ghana Reference Rate to remain at current low levels or decline further in the coming months . The easing borrowing environment could support credit growth to the private sector, which the Bank of Ghana has identified as a key priority for sustaining economic recovery.
However, external risks, particularly rising tensions in the Middle East and their potential impact on oil prices, could complicate the outlook and constrain the central bank’s ability to maintain its accommodative stance .
