Average lending rates fell to 31.66% in April 2023, from 35.87% recorded in March 2023.
This is equivalent to 2.63% interest rate on loans per month.
According to data from the Bank of Ghana, the average lending rates stood at 35.85% in January 2023 and 36.64% in February 2023 respectively.
Despite an ease in the cost of credit, the rates are said to be high.
However, the $3 billion International Monetary Fund-support programme approved last week, and expected to revitalize the economy will push lending rates further down in the coming months
The Monetary Policy Committee of the Bank of Ghana is expected to announce developments in the Ghanaian economy tomorrow, May 22, 2023, particularly its key lending rate – the Policy rate. It is expected that the policy rate will remain unchanged for the next two and half months, but depending on other factors the banks prioritise when lending, cost of borrowing might go down again.
Average lending rates vary among banks
The average lending rates, however, vary among the banks and the respective sectors they lend to.
Some banks offer loans equivalent to the Ghana Reference Rate of 25.76% as of April 2023, whilst others will charge rates as high as 40%.
This however depends on the risk profile of the customers.
Some banks also perceive lending to the agriculture and construction sectors as riskier, and therefore credit to these sectors are expensive.
Latest Stories
-
Election 2024: Bawumia dares Mahama to two-man debate
37 seconds -
Bawumia is a man of integrity and discipline unlike Mahama – Miracles Aboagye
5 mins -
Ejisu by-election: NDC is sponsoring Aduomi; don’t vote for him – Bawumia to NPP supporters
9 mins -
Freedom of speech must engender development
12 mins -
Ghana Hajj Board announces flight schedules for 2024 pilgrimage
19 mins -
T-bills: Interest rates increased for first time since January 1; government fails to meet target
2 hours -
Ghana retains 10th position with lowest fuel price in Africa
2 hours -
Will Ghana’s democracy stand the test of time in the 2024 elections?
5 hours -
Hindsight: Dreams fairytale run proved one thing; it is possible
6 hours -
God makes rulers, not you; you can’t choose your successor – Mahama to Akufo-Addo
7 hours -
Contributors own SSNIT, they must decide who becomes its Director-General – Austin Gamey
8 hours -
Move away from theory-based learning towards practical learning approaches – AUCC President to students
8 hours -
Haaland scores as Manchester City beat Nottingham Forest
9 hours -
Villas-Boas elected Porto president
9 hours -
Situation on frontline has worsened, Ukraine army chief says
9 hours