Average lending rate narrowed to 32.77% in February 2024, from 33.75% per annum in December 2023, according to data from the Bank of Ghana.
This is equivalent to 2.73% per month on loans charged by the banks.
According to the January 2024 Summary of Economic and Financial Data, the average lending rate stood at 32.94% in January 2024.
This drop shows the change in the rate is in line with the disinflation process.
The average lending rate began 2023 at 26.70% (January 2023) before ending the year at 33.75% (December 2023).
Meanwhile, the Ghana Reference Rate stood at 31.31% in February 2024.
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 today March 25, 2024.
Ahead of the announcement, some analysts and research firms expect the policy rate to remain unchanged to reflect the current inflation.
This is to ensure that the prices of goods and services remain relatively same.
The Bank of Ghana in January 2024 cut its base lending rate to banks by 100 basis points, its first rate cut since 2021.
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.
Latest Stories
-
Sulemana Braimah advocates gradual implementation of live courtroom coverage
10 mins -
Anti-LGBTQ+ bill: Allowing live coverage will reduce ‘pollution of proceedings’ – Dafeamakpor
13 mins -
GJA expresses concerns over live court coverage; fears abuse by some members
18 mins -
MFWA opposes uncontrolled access to live court proceedings for press
46 mins -
Ferry on Oti breaks down leaving drivers and passengers stranded
3 hours -
Fidelity Bank uplifts Abbeykope D/A Basic School with new classrooms and renovations
3 hours -
Nigeria invites bids for 12 new oil blocks, promises fair process
3 hours -
Achieving fair, violence-free elections is a collective responsibility- NCCE
3 hours -
I was too naïve to realize I was just a fling to him
3 hours -
My name is Kate and I was diagnosed with stage 4 cancer
3 hours -
Lalue’s last dance, a majestic display of culture, brings curtain down on Prampram Kpledomi
3 hours -
Voter registration: GIS denies allegations of collusion with EC in NDC strongholds
4 hours -
Out-of-pocket health services payment needs immediate attention – Ghana Health Service
4 hours -
Empathise with accident victims – Chairman of the Council of Bureaux, ECOWAS Brown Card tells insurers
4 hours -
‘You can never be settled’ – Bellingham dreaming of more after Champions League comeback
6 hours