The Chief Executive Officer of the Ghana Association of Bankers (GAB), John Awuah, has emphasised that the decline in Ghana’s Reference Rate (GRR) from 29.73 percent in early 2025 to 14.58 percent is largely due to the Bank of Ghana’s policy measures aimed at stabilising the economy.

At its 128th Monetary Policy Committee press briefing on January 28, 2026, the Bank of Ghana reduced the policy rate from 18 percent to 15.5 percent, a move that further pushed the reference rate down.

Despite this decline, lending rates remain high, with many businesses and households calling for further reductions to ease the cost of borrowing.

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Speaking in an interview, Awuah noted that lending rates are determined by a borrower’s risk profile, pointing to variations in loan pricing based on a customer’s credit score.

“As the Ghana Reference Rate declines, lending rates are also expected to reduce, and that is what we have seen over the last few months,” he said.

He explained that borrowers with strong credit histories and stable incomes are more likely to secure lower interest rates, while higher-risk customers face higher charges.

“Beyond the cost of funds, lending rates include a risk premium. Depending on a customer’s credit profile, one borrower may obtain a loan at 17 percent, while another may be charged 20 or 23 percent. There cannot be a single lending rate for all customers,” he stated.

He further added that lending rates are expected to ease from about 23 percent to around 17 percent in the coming days to enable businesses to access cheaper credit and boost economic activity.

SP/MA

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