The latest Bank of Ghana (BoG) report shows interest rates are still yet to respond significantly to developments on the market.

According to the report, the rates are still high despite continuous decline most of the variables that influence the cost of credit. 

The average interest rates, from January to February went down by 1 percent to 24.5 percent.

However, when you compare the February rate to what banks were charging in December 2017, then it went down by 2.5 percent.

Interest offered on deposits by banks from January to February ending 2018 rather went down marginally and it’s currently hovering at around 10 percent.

The data is based on figures available as at February 28, 2018.

The data revealed that the industry average base rate as at February 28, 2018, was 24.5 percent, representing a drop of 1.1 percent when compared with the average rate at end-January 2018.

On a year-on-year basis, the end-February 2018 figure represents a drop of 2.4 per cent, when compared with the same period last year. The average base rate at the end of December 2017 was 25.7 percent.

On the deposit front, the average deposit rate at the end of February 2018 was 10.1 percent, representing a drop of 0.3 percent, compared with the rate recorded for end January 2018.

Compared to the end-February 2017 rate of 11.6 percent, the end February 2018 figure represents a drop of 1.5 percent. The average deposit rate was 10.4 percent at the end of December 2017.

In all, the list covers 31 banks.

The APR is the true interest rate banks and non-bank financial institutions charge the public on loans and advances. It reflects the true cost of borrowing and includes charges and commissions levied by banks.

The average interest paid on deposits is the average interest paid by banks on deposits over the period.

Base rate reflects the minimum interest rate that can be charged on loans and credit advances. The publication of these rates is to promote transparency in the pricing and provision of banking services.

The Bank aims to promote accountability of its decision making and build an understanding of the monetary policy formulation process among stakeholders through the publication of these documents.