The Ghana Reference Rate (GRR), a key benchmark used by commercial banks to price loans, has fallen marginally for January 2026.

Data from the Ghana Association of Banks shows the rate dropped from 15.9% in December 2025 to 15.68%, effective January 7, 2026.

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.

Some commercial banks told JoyBusiness that marginal improvements in inflation and Treasury bill yields also contributed to the rate review.

Background

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

In November 2025, the GRR had increased slightly to 17.96% from 17.86%, influenced by small rises in Treasury bill rates—from 10.50% to 10.67%—and interbank rates, which edged up from 20.93% to 21%.

October 2025 saw the GRR drop by 2 percentage points, from 19.86% in September, continuing a steady downward trend throughout the year. The rate, which stood at 29.72% in January 2025, rose marginally to 29.96% in February, then steadily declined to 19.67% in August.

Impact

The latest reduction could lead to slightly lower borrowing costs and interest rates for commercial bank loans.

Loans contracted in December 2025 are likely to be benchmarked on the new GRR, meaning interest payments on new loans should be lower than those in November. Borrowers with fixed-rate loans are unaffected, while those on variable-rate agreements may see small adjustments depending on their bank’s pricing model.

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.

The latest Monetary Policy Report shows average lending rates have dropped from 26.6% to 24.2%, reflecting an easing credit environment.

The Bank of Ghana also notes declining money market yields, with the 91-day Treasury bill rate falling from 13.4% in July to 10.3% in August 2025.

Ghana Reference Rate

Introduced in 2017 by the Bank of Ghana and the Ghana Association of Banks, the GRR provides a transparent benchmark for determining lending rates.

The first GRR, set in April 2017, was 16.82%.

Developed after extensive consultation, the GRR replaced the old base rate model to provide a consistent and open framework for loan pricing and remains a central guide for interest rate decisions across Ghana’s financial sector.