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Ghana Reference Rate climbs to 10.61% in August, signalling fresh pressure on borrowing costs

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The Ghana Reference Rate (GRR), the benchmark used by commercial banks to price loans, is set to rise marginally to 10.61% in August 2026, up from 10.59% in July.

This could lead to a slight increase in borrowing costs for customers with variable-rate loans.

JOYBUSINESS calculations, based on the industry-approved formula for determining the Ghana Reference Rate and market data from industry players, indicate the benchmark will edge up by 0.02 percentage points this month.

Treasury Bill Rates Drive Increase

The marginal increase is largely attributed to the rise in the 91-day Treasury bill rate, which increased from 5.73% to 5.78% over the past month.

The other key components used in calculating the Ghana Reference Rate—the Bank of Ghana’s Monetary Policy Rate and the interbank rate—remained unchanged during the review period.

The Ghana Reference Rate is calculated using these three variables and serves as the base benchmark for pricing loans across Ghana’s banking industry.

Borrowers on Variable Loans to Feel the Impact

The increase is expected to translate into a modest rise in lending rates, particularly for borrowers whose facilities are tied to variable interest rates.

Customers with fixed-rate loans, however, are unlikely to be affected by the latest adjustment.

Despite the slight increase in the benchmark rate, JOYBUSINESS checks indicate that lending rates across the banking sector continue to trend downwards.

Average lending rates have fallen to around 16%, while some customers are reportedly accessing credit at rates between 11% and 12.5%, reflecting increased competition among banks and improved financing conditions for selected borrowers.

Mixed Trend in 2026

The Ghana Reference Rate has recorded mixed movements throughout 2026.

The benchmark stood at 11.71% in March before declining to 10.06% in April. It eased further to 10.03% in May and 10.02% in June, before rising to 10.59% in July. The projected 10.61% for August marks another slight increase.

Introduced in 2017 by the Bank of Ghana in collaboration with the Ghana Association of Banks, the Ghana Reference Rate was designed to provide a transparent and uniform benchmark for determining lending rates across the country’s banking sector.

Although the latest increase is marginal, it signals that borrowing costs could remain under pressure, even as lending rates continue to soften in parts of the market.

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