Average lending rate surged to 32.69% in October 2023, data from the Bank of Ghana has revealed.

This is equivalent to an average of 2.724% per month on loans charged by the banks

According to the November 2023 Summary of Economic and Financial Data, the average lending rate declined from March 2023 to May 2023, and remained within the 31% bracket till September 2023.

In February 2023, the average lending rate stood at 36.64%, but fell to 35.87% in March 2023.

It fell again sharply to 31.66% in April 2023 and 30.94% in May 2023, but rose slightly to 31.5% in June 2023.

Meanwhile, the Ghana Reference Rate stood at 31.09% in October 2023.

The Monetary Policy Committee of the Bank of Ghana is set to announce developments in the economy with a key decision on the Policy Rate on November 27, 2023.

Already, some bank chiefs and analysts are anticipating a steady policy rate for the next two and half months.

In July 2023, the Bank of Ghana increased its key interest rate to 30% to tighten inflation. It further kept it unchanged in September 2023.

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, whilst others will charge rates as high as 40%.

This however depends on the risk profile of the customers.