Ghana Reference Rate for January has fallen to 15.68%, signaling a likely drop in interest rates

The Ghana Reference Rate (GRR), a key benchmark for commercial banks in setting loan prices, has dipped slightly for January 2026. According to the Ghana Association of Banks, the rate fell from 15.9% in December 2025 to 15.68%, effective January 7, 2026.

The drop was fueled by better performance in key indicators used to determine the GRR, such as the Monetary Policy Rate, Treasury bill rates, and interbank market rates.

Some commercial banks told Accra Business News that slight improvements in inflation and Treasury bill yields also played a role in the rate review.

Background By ABN

In December 2025, the GRR fell to 15.9% following a 350-basis-point reduction in the Monetary Policy Rate to 18% and a slight decline in Treasury bill rates.

In November 2025, the GRR had increased slightly to 17.96% from 17.86%, influenced by small rises in Treasury bill rates—from 10.50% to 10.67%—and interbank rates, which edged up from 20.93% to 21%.

October 2025 saw the GRR drop by 2 percentage points, from 19.86% in September, continuing a steady downward trend throughout the year. The rate, which stood at 29.72% in January 2025, rose marginally to 29.96% in February, then steadily declined to 19.67% in August.

Impact Report

The latest reduction could lead to slightly lower borrowing costs and interest rates for commercial bank loans.

Loans taken out in December 2025 will likely be based on the new GRR, which means interest payments for new loans should be lower than in November. Fixed-rate borrowers won’t be affected, while those with variable-rate loans might notice slight changes depending on their bank’s pricing approach.

The decline comes as many businesses continue to face tight credit conditions due to a liquidity squeeze driven by measures to curb inflation and stabilise the economy.

The latest Monetary Policy Report shows average lending rates have dropped from 26.6% to 24.2%, reflecting an easing credit environment.

The Bank of Ghana also notes declining money market yields, with the 91-day Treasury bill rate falling from 13.4% in July to 10.3% in August 2025.

Ghana Reference Rate by ABN

Introduced in 2017 by the Bank of Ghana and the Ghana Association of Banks, the GRR provides a transparent benchmark for determining lending rates.

In April 2017, the first GRR was set at 16.82%. Created after thorough consultations, it replaced the old base rate model to offer a clear and consistent framework for loan pricing, and it continues to serve as a key reference for interest rate decisions throughout Ghana’s financial sector.

Source: Accra Business News