Ghana’s Reference Rate (GRR), the key benchmark used by commercial banks to price loans, has dropped sharply to 11.71% for March, down from 14.58% in February.

The decline marks one of the most significant reductions in recent times in the benchmark used to determine the cost of credit.

JOYBUSINESS understands that the drop was largely driven by a significant fall in Treasury bill rates into the single-digit range, alongside a marginal decline in the interbank rate.

Industry players say the reduction in Treasury bill rates was partly influenced by the government’s fiscal consolidation agenda, which has limited domestic borrowing, as well as by excess liquidity in the banking sector.

Key Variables Behind the March 2026 GRR

The Ghana Reference Rate for March 2026 was shaped by the following variables:

• Treasury Bill rates (end-February)
• Interbank rate (February average)
• Monetary Policy Rate

Impact

The latest decline could trigger one of the biggest drops in lending rates between now and April 3, 2026.

Average lending rates are currently hovering around 22%. With the reduction in the benchmark rate, borrowers could potentially secure loans at around 19%, depending on their risk profile and negotiations with banks.

Borrowers with very strong credit histories may even access loans at single-digit rates.

There are already reports that some commercial banks are offering facilities at the Ghana Reference Rate minus five percentage points for their most creditworthy customers.

Explainer

Loans contracted in February 2026 at variable rates are likely to witness further reductions in the coming days. This means the cost of servicing such loans could decline further.

However, borrowers who negotiated fixed-rate loans will not benefit from the reduction. Those on variable-rate facilities may see adjustments, depending on their bank’s pricing model.

Since the GRR serves as a benchmark for loan pricing, commercial banks may revise lending rates downward from the February 2026 level of around 22%.

The decline comes at a time when many businesses continue to face tight credit conditions due to liquidity constraints arising from measures aimed at curbing inflation and stabilising the economy.

Stephane Miezan, President of the Ghana National Chamber of Commerce and Industry, has noted that the major challenge facing businesses is not only the cost of credit but also limited access to financing from commercial banks. He has warned that the situation has contributed to the collapse of some firms.

Background

The Ghana Reference Rate was cut marginally from 15.58% in January to 14.58% in February 2026.

In December 2025, the GRR declined to 15.9% following a 350-basis-point reduction in the Monetary Policy Rate to 18%, alongside a slight drop in Treasury bill rates.

Earlier, in November 2025, the GRR had risen marginally to 17.96% from 17.86%, driven by increases in Treasury bill and interbank rates.

The rate generally trended downward throughout 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 and the Ghana Association of Banks as a transparent benchmark for determining lending rates.

Developed after extensive consultations, the GRR replaced the previous base-rate model to promote transparency, consistency, and fairness in loan pricing. The maiden rate, announced in April 2017, stood at 16.82%.