The Ghana Reference Rate (GRR), a key benchmark for determining interest rates by commercial banks, has gone up slightly for November 2025.

Data from the Ghana Association of Banks shows the rate increased from 17.86% in October to 17.93% in November 2025.

Sources close to the Association told JoyBusiness that the rise was influenced by marginal increases in key indicators such as Treasury bill rates — up from 10.50% to 10.67% — and interbank rates, which edged up from 20.93% to 21%.

In October, the GRR dropped by 2% from 19.86% in September, continuing a downward trend observed throughout the year.

The rate stood at 29.72% in January 2025, rose slightly to 29.96% in February, and declined steadily to 19.67% in August 2025.

Industry analysts have linked the earlier drop in October to the reduction in key variables, including inflation, Treasury bill rates, and the Bank of Ghana policy rate, which was cut by more than 600 basis points to 21.5%.

Impact

The marginal increase in the Ghana Reference Rate could affect the cost of lending and overall interest rates in the country.

Since the GRR serves as a benchmark for loan pricing, commercial banks may adjust their rates upward slightly in November.

Borrowers with fixed-rate loans will not be affected, but those with variable-rate loans may see a small rise in their interest payments.

The development comes at a time when many businesses are struggling to access credit amid a liquidity squeeze — a result of the Bank of Ghana’s measures to curb inflation and stabilise the economy.

According to the latest Monetary Policy Report, average lending rates have fallen from 26.6% to 24.2%, reflecting an overall easing trend.

The Bank of Ghana also noted that yields on money market instruments have declined, with the 91-day Treasury bill rate dropping from 13.4% in July to 10.3% in August 2025.

The Ghana Reference Rate

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. The maiden rate, set in April 2017, was 16.82%.

Developed after extensive consultations, the GRR replaced the old base rate model to create a more transparent and consistent framework for pricing loans.

It remains a key tool in guiding interest rate decisions across the country’s financial sector.