{"id":63276,"date":"2025-10-07T08:25:16","date_gmt":"2025-10-07T08:25:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/63276\/"},"modified":"2025-10-07T08:25:16","modified_gmt":"2025-10-07T08:25:16","slug":"borrowers-to-see-relief-as-ghanas-benchmark-lending-rate-falls-again","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/63276\/","title":{"rendered":"Borrowers to see relief as Ghana’s benchmark lending rate falls again"},"content":{"rendered":"

\"Borrowers <\/a>Borrowers to see relief as Ghana’s lending benchmark falls again<\/p>\n

Ghana’s benchmark lending rate has fallen to 17.86% in October, down from 19.86% in September, according to the Ghana Association of Banks (GAB).<\/p>\n

The two-percentage-point drop in the Ghana Reference Rate (GRR) follows the <\/a><\/a><\/a>Bank of Ghana<\/a>\u2019s aggressive 350-basis-point policy rate cut in September, which lowered the monetary policy rate to 21.5%.<\/p>\n

The reduction is expected to ease lending and borrowing costs across the banking sector.<\/p>\n

At the start of the year, the GRR stood at 29.72%, edging up slightly to 29.96% in February before steadily declining over the past six months to 19.67% in August.<\/p>\n

Lending rates to drop in October after policy rate cut – BoG<\/a><\/p>\n

Industry analysts have linked the latest cut to a consistent decline in key economic indicators such as inflation, treasury bill yields, and, most notably, the <\/a><\/a><\/a>Bank of Ghana<\/a>\u2019s policy rate, which has been slashed by over 600 basis points to 21.5%.<\/p>\n

According to the <\/a><\/a><\/a>Bank of Ghana<\/a>\u2019s recent Monetary Policy Report, average lending rates have eased from 26.6% to 24.2%, while yields on money market instruments are also trending downward.<\/p>\n

For instance, the 91-day treasury bill rate fell from 13.4% at the end of July 2025 to 10.3% in August.<\/p>\n

The cut in the GRR could provide relief for businesses with variable-rate loans, which may be reviewed in line with the decline. New borrowers are also expected to benefit from lower lending costs as commercial banks adjust their rates.<\/p>\n

The GRR, introduced in 2017 by the <\/a><\/a><\/a>Bank of Ghana<\/a> and GAB, was designed to improve transparency in loan pricing and guide banks in setting interest rates.<\/p>\n

The maiden rate was pegged at 16.82% in April 2017.<\/p>\n

SP\/MA<\/p>\n

Watch the latest edition of BizTech below:<\/p>\n","protected":false},"excerpt":{"rendered":"Borrowers to see relief as Ghana’s lending benchmark falls again Ghana’s benchmark lending rate has fallen to 17.86%…\n","protected":false},"author":2,"featured_media":63277,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-63276","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/63276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=63276"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/63276\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/63277"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=63276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=63276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=63276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}