Average lending rates fell to 31.66% in April 2023, from 35.87% recorded in March 2023.

This is equivalent to 2.63% interest rate on loans per month.

According to data from the Bank of Ghana, the average lending rates stood at 35.85% in January 2023 and 36.64% in February 2023 respectively.

Despite an ease in the cost of credit, the rates are said to be high.

However, the $3 billion International Monetary Fund-support programme approved last week, and expected to revitalize the economy will push lending rates further down in the coming months

The Monetary Policy Committee of the Bank of Ghana is expected to announce developments in the Ghanaian economy tomorrow, May 22, 2023, particularly its key lending rate – the Policy rate. It is expected that the policy rate will remain unchanged for the next two and half months, but depending on other factors the banks prioritise when lending, cost of borrowing might go down again.

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 25.76% as of April 2023, whilst others will charge rates as high as 40%.

This however depends on the risk profile of the customers.

Some banks also perceive lending to the agriculture and construction sectors as riskier, and therefore credit to these sectors are expensive.