Ghana’s Reference Rate (GRR) for May 2026 has edged down marginally to 10.03%, from 10.06% in April.

The figure is based on JOYBUSINESS calculations using the formula adopted by industry players in determining the Ghana Reference Rate each month.

The GRR is the key benchmark used by commercial banks in pricing loans in Ghana.

The latest movement could lead to a marginal reduction in lending rates on loans negotiated between May 5, 2026 and June 1, 2026.

What drove the decline

The marginal drop in the reference rate was driven mainly by a slight decline in the interbank rate at the end of April 2026, which fell to 10.30%.

At the same time, Treasury bill rates inched up from 4.81% to 4.92%.

However, the decline in the interbank rate was enough to offset the upward movement in Treasury bill yields, pushing the Ghana Reference Rate down from 10.06% to 10.03%.

JOYBUSINESS based its calculation on three key variables — Treasury bill rates, the interbank rate and the monetary policy rate.

Impact on borrowers

The latest adjustment is expected to trigger another round of lending rate cuts by commercial banks.

Borrowers on fixed-rate facilities may not benefit immediately.

However, customers whose loans are linked to variable rates could see a slight reduction in borrowing costs.

Customers with strong credit profiles may also be able to secure loans at single-digit rates.

Checks by JOYBUSINESS indicate that some banks are already offering facilities at the Ghana Reference Rate minus five percentage points to their most creditworthy clients.

Chief Executive of the Ghana Association of Banks, John Awuah, has also indicated that some commercial banks are already offering single-digit interest rates.

Background

The Ghana Reference Rate serves as the benchmark for loan pricing across the banking sector.

The latest decline comes at a time when businesses continue to face tight credit conditions, largely due to liquidity management measures aimed at controlling inflation and stabilising the economy.

The GRR has been on a downward path in recent months. It fell from 15.58% in January to 14.58% in February, then to 11.71% in March 2026, before declining further to 10.06% in April.

In December 2025, the rate dropped to 15.9% following a 350-basis-point cut in the policy rate to 18%, alongside a slight decline in Treasury bill rates.

In November 2025, however, the GRR rose slightly to 17.96% from 17.86%, driven by increases in Treasury bill and interbank rates.

Overall, the rate trended lower through 2025, falling from 29.72% in January to 19.67% by August.

The Ghana Reference Rate was introduced in 2017 by the Bank of Ghana in collaboration with the Ghana Association of Banks as a transparent benchmark for determining lending rates.

It replaced the previous base-rate model to promote consistency and fairness in loan pricing.