Latest data from the Central Bank on interest rates showed that the cost of credit witnessed marginal decline from January to November this year.

This is despite the significant reduction in the Bank of Ghana (BoG's) policy rate by 550 basis points and most of the variables that influence the cost of credit in the country, like inflation rate and treasury bill rate.

Details of BoG data

The data covered interest charged on loans and credit advances and the Average Interest paid on deposits by the 31 commercial banks reviewed.   

It revealed that the industry average base rate as at November 30 was 25.7 percent, same as that of October 31.

This figure, however, represents a marginal decrease of 0.3 percent, when compared with end–September figure of 26 percent.

At the start of the year (end-January), the industry average base rate was 27.6 percent, giving a year-to-date (end-November) drop of 1.9 percent.


The average deposit rate as at November 30 was 10.2 percent, representing a drop of 0.2 percent, compared with an end-October figure of 10.4 percent.

The average deposit rate remained the same for both September and October.

Computed on a year-to-date basis, the end-November figure represents a decrease of 1.7 percent. 

At the start of the year (end-January), the average deposit rate was 11.9 percent.

The APR is the true interest rate banks and non-bank financial institutions charge the public on loans and advances. It reflects the true cost of borrowing and includes charges and commissions levied by banks.

The Average Interest paid on deposits is the average interest paid by banks on deposits over the period. Base rate reflects the minimum interest rate that can be charged on loans and advances.

The publication of these rates is to promote transparency in the pricing and provision of banking services according to the BoG.

The Central Bank aims to promote accountability of its decision making and to build an understanding of the monetary policy formulation process among stakeholders through the publication of these documents.

Best bank for businesses and individuals to secure credit

Bank of Baroda has again emerged as the best place for businesses and individuals to secure credit.

The Annual Percentage Rate and Average Interest data showed the bank offered an interest of 20 to 30 percent for those turned to the Bank for Agric, construction, manufacturing and commerce loan.

Omni Bank also offered an interest of 14.7 percent, the highest on deposits over the past three months compared to the other 30 bank reviewed.