The Ghana Reference Rate (GRR), the benchmark used by commercial banks to price loans, has fallen further to 10.04% in October 2026.

The latest figure represents a decline from 10.18% recorded in September.

The reduction, based on JOYBUSINESS calculations using the industry-approved formula and market data from industry players, points to a continued easing in the benchmark rate.

Reasons

The latest decline was largely influenced by slight reductions in Treasury bill (T-bill) rates and interbank market rates.

This comes despite the Monetary Policy Rate remaining unchanged at 14% since the first quarter of 2026.

The trend suggests that movements in the Ghana Reference Rate this year have been influenced more by fiscal and money-market conditions than changes in the central bank’s policy rate.

T-bill rates, which reflect developments in government borrowing and fiscal conditions, have played a key role.

Interbank market dynamics, including increased liquidity and competition among banks, have also contributed to the movement in the benchmark.

Implications

The marginal decline could offer some relief to borrowers with variable-rate loan facilities as lending costs continue to ease.

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

The development could also benefit new borrowers as banks compete to provide credit at lower rates.

Average lending rates have fallen to around 15%, while some customers are reportedly accessing credit at rates between 11% and 12.5%.

GRR Movement 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 rate increased further to 10.61% in August, then fell to 10.18% in September and now to 10.04% in October.

The latest movement therefore continues the recent downward trend in the benchmark.

Background

The Ghana Reference Rate was introduced in 2017 by the Bank of Ghana in collaboration with the Ghana Association of Banks.

It was designed to provide a transparent and uniform benchmark for determining lending rates across Ghana’s banking sector.

The benchmark is used by commercial banks as a key reference point when pricing loans and other credit facilities.