Amanze Chinonye
Ghana’s average bank lending rate fell to 15.94% in August from 24.15% a year earlier, extending a sharp decline in borrowing costs as easier monetary conditions increasingly filter through the banking system, Bank of Ghana data showed.
The 8.21 percentage-point decline represents a reduction of about 34% from the August 2025 level. Lending rates have fallen steadily this year, from 20.58% in January to 19.17% in February, 17.74% in March, 16.33% in April, 15.83% in May, 15.64% in June and 15.80% in July.
Join our WhatsApp ChannelREAD ALSO :
The decline has coincided with an easing cycle by the central bank. The Bank of Ghana cut its Monetary Policy Rate from 25% in August 2025 to 21.5% in September, 18% in November, 15.5% in January 2026 and 14% in March. It has since kept the benchmark at 14%, including at its latest meeting in September.
Other market rates have also declined. The interbank weighted-average rate fell to 10.20% in August from 23.28% a year earlier, while the Ghana Reference Rate, used as a base for loan pricing, stood at 10.61%, down from 19.67% in August 2025.
The Bank of Ghana has attributed the decline in lending rates to the transmission of lower policy and money-market rates into financing conditions. Its monetary policy assessment said economic activity remained resilient in the first half of 2026, supported by easing credit conditions and increased private-sector credit.
The improvement in financing conditions has coincided with stronger banking-sector indicators. Total banking-sector assets rose 20.5% year-on-year to 500.2 billion Ghanaian cedis in August, while the sector’s capital adequacy ratio increased to 19.1% from 18.3% a year earlier, the central bank said.
READ MORE :
Inflation stood at 5% in August, below the Bank of Ghana’s medium-term target range of 6%-10%. The central bank has, however, flagged risks from higher petroleum prices, utility tariff adjustments, global supply-chain disruptions and external financial conditions.
The Monetary Policy Committee kept the policy rate at 14% on Sept. 24, its third consecutive hold, saying risks to inflation and economic growth were broadly balanced. The decision leaves earlier monetary easing to continue filtering through financial markets as policymakers monitor inflationary and external risks.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
