Average lending rate continue to remain within the 31% bracket after falling from a high of 35.8% in January 2023 to 31.15% in June 2023.

This is equivalent to an average of 2.583% per month on loans charged by the banks.

According to data from the Bank of Ghana, average lending rate stood at 31.52% in July 2023, but shot up marginally to 31.78% in August 2023.

The rate is, however, lower than inflation of 40.3% recorded in August 2023.

In January 2023, average lending rate stood at 35.85%. It went up to 36.64% in February 2023, but fell to 35.87% in March 2023.

It fell again sharply to 31.66% in April 2023 and 30.94% in May 2023, but rose slightly to 31.5% in June 2023.

The Monetary Policy Committee of the Bank of Ghana is set to announce developments in the economy with a key decision on the Policy Rate on September 25, 2023.

Already, some bank chiefs and analysts are anticipating a steady policy rate for the next two and half month.

In July 2023, the Bank of Ghana increased its key interest rate to 30% to tighten inflation.

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 of 29.28% as of August 2023, whilst others will charge rates as high as 40%.

This however depends on the risk profile of the customers.