The average lending rates of banks declined marginally to 30.45 per cent in October 2024, the Bank of Ghana has disclosed.
This is from 32.69 per cent recorded in the corresponding period of 2023.
The data from the Central Bank revealed that the average lending rates have fallen consistently but marginally since the beginning of the year.
The average lending rate began in January 2024 at 32.94 per cent and took a nosedive in February and March 2024, respectively.
It stood at 32.77 per cent in February 2024 and further dropped to 32.35 per cent in March 2024. It again eased in April 2024 to 31.25 per cent.
Subsequently, it went down slightly to 31.10 per cent in June 2024 and then 30.71 per cent in July 2024. It however went up marginally to 30.79 per cent in August 2024.
The Ghana Reference Rate, however, stood at 28.91 per cent in October 2024, lower than the 29.31 per cent in August 2024.
The Central Bank kept the policy rate unchanged at 29 per cent in November 2024. It cited some slightly elevated inflation driven by high and unstable food prices, pass-through of previous exchange rate pressures, fuel prices and utility tariff adjustments.
The average lending rates, however, vary among the banks and the respective sectors they lend to.
Some banks offer loans equivalent to the Ghana Reference Rate, whilst others will charge rates as high as 40 per cent.
This, however, depends on the risk profile of the customers
