July APR increases to 26.6 %

The Bank of Ghana (BoG) has announced an Annual Percentage Rates (APR) of 26.6 per cent for the month of July 2017.

The industry average base rate as at July 31, 2017 was 26.6 per cent, showing an increase of 0.3 per cent, when compared to the rate at the end of June. However, overall, the industry average base rate at the end of July represented a year- to -date decline of one per cent. At the start of the year (end-January), the industry average base rate was 27.6 per cent.

At 10.9 per cent, the average deposit rate at the end of July 2017 was the same as that of June. As the average deposit rate at the start of the year (end-January) was 11.9 per cent, the year- to- date figure also remained unchanged at 1 per cent drop. In all, the list covers 33 banks.

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. 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.

The BoG said it aims to promote accountability of decision making and building understanding of the monetary policy formulation process among stakeholders through the publication of the figures.