Ghana’s benchmark lending rate has increased marginally to 10.61% for August 2026 from 10.59% in July, extending its upward trend and adding pressure on businesses as rising inflation and higher financing costs threaten to weigh on private-sector activity.
The Ghana Reference Rate (GRR), which serves as a base for pricing loans by commercial banks, remains a key indicator for companies assessing the cost of financing expansion, working capital and investment projects.
The latest increase comes as inflationary pressures have returned, complicating expectations for lower borrowing costs. Ghana’s inflation rate has been rising in recent months, driven largely by higher non-food prices, transport costs, rent and other services.
The combination of rising prices and higher benchmark lending costs creates a more challenging operating environment for businesses. Companies may face increased expenses for raw materials, logistics and wages while also paying more to access credit.
Small and medium-sized enterprises are expected to feel the impact most, as many depend heavily on bank financing for inventory purchases, working capital and business expansion. Higher lending costs could discourage new borrowing and delay investment decisions among firms already managing rising operating expenses.
The increase in the reference rate also highlights the challenge facing monetary authorities as they balance economic growth objectives with renewed inflation risks.
While Ghana’s inflation remains significantly below the levels recorded during the recent economic crisis, the recent upward movement has complicated expectations for faster monetary easing.
