Ghana has seen interest rates drop sharply since this year's beginning, placing it 1^st among 11 African countries.

However, the West African nation remains second with the highest interest rates on the continent, while Egypt is still ranked first with the highest yields.

Since the beginning of the year, the yield on the 91-day bill has gone down by 3.94 percentage points to 24.48%.

Similarly, that of the 182-day bill has also declined by 3.58 percentage points to 25.39%.

The declining interest rates will compel the Bank of Ghana to cut its monetary policy rate from the current 27%.

The country with the lowest interest rates in Africa is Rwanda, with the 91-day pegged at 7.05% and the 182-day at 7.39%.

This indicates that it has a low-interest rate environment.

Nigeria still boasts of a high-interest rate environment with the yields on 91-day and 182-day bills going for 18.00% and 18.50%, respectively.

Money Market Rates Broadly Trended Downwards

According to the Bank of Ghana, the 91-day and 182-day Treasury bill rates declined to 27.73% and 28.43%, respectively, in December 2024, from 29.39% and 31.70% in December 2023.

 Similarly, the rate on the 364-day instrument declined to 29.95% in December 2024 from 32.97% in December 2023.

Additionally, the Interbank Weighted Average Rate (IWAR) dropped to 27.03% in December 2024 from 30.19% a year earlier.

This decline contributed to a reduction in average lending rates for banks from 33.75% to 30.25% over the same period.