Average lending rate of banks declined marginally to 31.10% in June 2024 from 31.15% in May 2024. 

This is equivalent to 2.591% per month.

According to data from the Bank of Ghana, the declining cost of borrowing reflects an easing inflation rate.

The average lending rate began in 2024 at 32.94% and took a nosedive in February and March 2024 respectively. It stood at 32.77% in February 2024 and then dropped to 32.35% in March 2024.

 It again eased in April 2024 to 31.25%.

The Ghana Reference Rate however stood at 29.44% in June 2024.

The Monetary Policy Committee of the Bank of Ghana kept the policy rate unchanged at 29.0% today July 26, 2024.

The Central Bank cited some uncertainty regarding the inflation path for the year, given recent exchange rate pressures, upward adjustment in utility tariffs and increases in ex-pump fuel prices.

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.