The Ghana Reference Rate (GRR), a key benchmark used by commercial banks in pricing loans, has dropped marginally to 14.58% in February 2026, down from 15.68% in January.

The decline was driven by improvements in key indicators used to calculate the GRR, including the Monetary Policy Rate, Treasury bill rates, and interbank market rates.

The following variables shaped the Ghana Reference Rate for February 2026:

• 91-day Treasury bill rate: 11.19% (end of January)
• Interbank rate: 14.91% (January average)
• Monetary Policy Rate: 15.5%

Sources indicate that the recent cut in the Bank of Ghana’s Monetary Policy Rate to 15.5% played a significant role in the reduction of the February GRR.

Background

The Ghana Reference Rate was last reviewed downward on January 7, 2026, when it was cut from 15.9% in December 2025 to 15.68%.

In December 2025, the GRR fell to 15.9% following a 350-basis-point reduction in the Monetary Policy Rate to 18%, alongside a slight decline 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 has generally trended downward throughout 2025, declining from 29.72% in January to 19.67% by August.

Introduction of the GRR

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 following extensive consultations, the GRR replaced the prior base-rate model to promote transparency, consistency, and fairness in loan pricing. The maiden rate, announced in April 2017, was 16.82%.

Implications for Borrowers

The latest decline could help reduce the cost of borrowing over the coming month.

Loans contracted in February 2026 at variable rates are likely to be benchmarked against the new Ghana Reference Rate, meaning interest payments may be lower than in previous months.

However, borrowers who negotiated fixed-rate loans will not see a reduction in their cost of credit. Those on variable rates may see small adjustments depending on their bank’s pricing model.

Since the GRR serves as a benchmark for loan pricing, commercial banks may adjust lending rates downward from January 2026 levels, which were around 22%.

The decline comes as many businesses continue to face tight credit conditions due to a liquidity squeeze driven by measures to curb inflation and stabilise the economy.

Stephane Miezan, President of the Ghana National Chamber of Commerce and Industry, noted that the major challenge facing businesses is not only the cost of credit but limited access to financing from commercial banks.

He warned that the situation has contributed to the collapse of some firms.