Banks' average lending rates hovered around the 30% bracket during the second half of the year, after declining from 32% at the beginning of the year.

According to data from the Bank of Ghana, the average lending rate stood at 30.25% in December 2024, after recording 30.07% and 30.45% in October 2024 and November 2024 respectively.

The average lending rate began in January 2024 at 32.94% and took a nosedive in February 2024 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 28.84% in December 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.