The average lending rates of banks declined marginally to 30.45% in October 2024, the Bank of Ghana has disclosed.

This is from 32.69% recorded in the corresponding period of 2023.

The data from the Central Bank revealed that the average lending rates have fallen consistently but marginally since the beginning of the year.

The average lending rate began in January 2024 at 32.94% and took a nosedive in February and March 2024 respectively.

It stood at 32.77% in February 2024 and further dropped to 32.35% in March 2024. It again eased in April 2024 to 31.25%.

Subsequently, it went down slightly to 31.10% in June 2024 and then 30.71% in July 2024. It however went up marginally to 30.79% in August 2024.

The Ghana Reference Rate however stood at 28.91% in October 2024, lower than the 29.31% in August 2024.

The Central Bank kept the policy rate unchanged at 29% in November 2024. It cited some slightly elevated inflation driven by high and unstable food prices, pass-through of previous exchange rate pressures, fuel prices and utility tariff adjustments.

 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.