Ghana’s Reference Rate (GRR), the key benchmark used by commercial banks to price loans, has declined to 10% for April, down from 11.71% in March 2026.

The drop, though marginal, reinforces its role as a critical guide in determining the cost of credit in the country.

JoyBusiness understands that the decline was driven mainly by a further fall in Treasury bill rates into single-digit territory, alongside a slight dip in the interbank rate and a reduction in the Bank of Ghana’s Monetary Policy Rate to 14%.

The March 2026 GRR was influenced by key variables, including end-March Treasury bill rates, the average interbank rate for March, and the Monetary Policy Rate.

The latest adjustment is expected to trigger another round of lending rate cuts by commercial banks between now and May 3, 2026.

The average lending rate is less 20%. It's between 16% and 19% for commercial credit. But there are exceptions for very large firms that have the negotiating power.

However, basic salary loans, auto loans, and mortgages are below 14% and are expected to drop further.

Customers with strong credit histories may even secure loans at single-digit rates. Some banks are already offering facilities at the GRR, minus 5 percentage points, to their most creditworthy clients.

Loans contracted in March 2026 on variable rates are likely to see further reductions in the coming days, lowering the cost of servicing such facilities.

However, borrowers on fixed-rate loans will not benefit from the change. Adjustments for variable-rate loans will depend on each bank's pricing model.

As the GRR serves as the benchmark for loan pricing, commercial banks are expected to revise lending rates downward from the March average of about 20%.

The decline comes at a time when businesses continue to face tight credit conditions, largely due to liquidity constraints stemming from measures to control inflation and stabilise the economy.

The GRR has been trending downward in recent months. It fell from 15.58% in January to 14.58% in February, and then to 11.71% in March 2026.

In December 2025, the rate dropped to 15.9% following a 350-basis-point cut in the policy rate to 18%, alongside a slight decline in Treasury bill rates.

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

Overall, the rate trended downward through 2025, falling from 29.72% in January to 19.67% by August.

The Ghana Reference Rate was introduced in 2017 by the Bank of Ghana in collaboration with the Ghana Association of Banks as a transparent benchmark for determining lending rates.

It replaced the previous base-rate model to promote consistency and fairness in loan pricing.