The Ghana Association of Banks (GAB) says borrowers both corporate and household should expect lower lending rates as the Ghana Reference Rate (GRR) drops in step with recent monetary easing by the Bank of Ghana.
The assurance came on August 11, 2025, when GAB executives visited the Ceremonial Gardens at Jubilee House to lay a wreath in honour of the eight people killed in last week’s military helicopter crash.
Speaking to the media after the event, GAB Chief Executive Officer John Awuah said the reduction in the Bank of Ghana’s policy rate to 25% and the GRR’s sharp fall to 19.67% in August down from 29.72% in January would be fully passed on to customers whose loans are pegged to the benchmark.
“The reference rate has also reduced which is basically taking up the full load of the reduction in the policy rate. So if you are a borrower from a bank and your facility rate is benchmarked to the Ghana Reference Rate, you should see the full weight of that reduction in your new lending rate,” Awuah assured.
The 10.05 percentage point drop in the GRR marks its lowest level in over two years, signalling improved macroeconomic stability, easing inflation, and greater liquidity in the financial system. By contrast, the same period in 2024 saw the GRR remain stubbornly above 29%.
Analysts note that the combined policy rate cut and falling GRR could provide a welcome reprieve for businesses facing high borrowing costs, potentially stimulating investment and consumer spending. However, the extent and speed of rate transmission to customers will depend on individual bank pricing policies and risk assessments.
The Bank of Ghana’s Monetary Policy Committee cut the policy rate from 28% to 25% in July, citing anchored inflation expectations, stronger reserves, and returning investor confidence moves that the GAB says it is committed to reflecting in the cost of credit.
