Ghana Reference Rate Falls to 14.58% in February on Improved Market Indicators

The Ghana Reference Rate (GRR), the benchmark used by commercial banks to price loans, declined marginally to 14.58 percent in February 2026, down from 15.68 percent in January.

The reduction reflects improvements in key variables used to compute the rate, including the Monetary Policy Rate, Treasury bill yields, and interbank market rates.

According to market data, the 91-day Treasury bill rate stood at 11.19 percent at the end of January, while the interbank rate averaged 14.91 percent over the same period. The Bank of Ghana’s recent cut in the Monetary Policy Rate to 15.5 percent was a major contributor to the February decline in the GRR.

The GRR was last reviewed downward on January 7, 2026, when it fell from 15.9 percent in December 2025 to 15.68 percent. In December, the rate had declined following a 350-basis-point cut in the Monetary Policy Rate to 18 percent, alongside a modest drop in Treasury bill rates.

Earlier, in November 2025, the GRR edged up slightly to 17.96 percent from 17.86 percent, driven by rising Treasury bill and interbank rates.

Overall, the benchmark rate trended downward through much of 2025, falling sharply from 29.72 percent in January to 19.67 percent by August.

Background to the GRR

The Ghana Reference Rate was introduced in 2017 by the Bank of Ghana in collaboration with the Ghana Association of Banks to serve as a transparent and consistent benchmark for loan pricing.

It replaced the previous base-rate system following extensive consultations, with the aim of promoting fairness and clarity in lending. The maiden GRR, announced in April 2017, stood at 16.82 percent.

Implications for Borrowers

The latest decline in the GRR could ease borrowing costs marginally in the coming month, particularly for customers on variable-rate loans contracted in February 2026.

While borrowers on fixed-rate loans will not benefit from the adjustment, those on variable rates may see slight reductions depending on individual bank pricing models.

Commercial bank lending rates, which averaged around 22 percent in January 2026, could be adjusted downward in line with the new benchmark.

However, the relief comes amid continued tight credit conditions, as liquidity constraints persist due to measures aimed at controlling inflation and stabilising the economy.

President of the Ghana National Chamber of Commerce and Industry, Stephane Miezan, noted that businesses are grappling not only with high borrowing costs but also limited access to credit from commercial banks, a situation he warned has contributed to the collapse of some firms.