Following recent adjustments to the Ghana Reference Rate, the Chief Executive Officer of the Ghana Association of Banks (GAB), John Awuah, has announced that borrowers should expect a reduction in new lending rates.
Speaking during a visit to the Ceremonial Gardens of Jubilee House on Monday, August 11, 2025, where GAB laid a wreath in honour of the eight individuals who tragically lost their lives in last week’s military helicopter crash, Awuah stated that the recent drop in the Bank of Ghana’s policy rate has directly influenced the Ghana Reference Rate.
The Ghana Reference Rate, which is updated monthly, reflects changes in the central bank’s policy rate, interbank lending rates, and other market indicators.
Cedi continues to sell at GH¢10.60 to a dollar on interbank market
Awuah noted that this rate serves as a benchmark for loan pricing across commercial banks.
He further explained that the reduction will make credit more accessible, especially for small and medium-sized enterprises (SMEs) and consumers seeking personal loans.
“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 said.
The announcement is expected to bring relief to businesses and households, many of whom have faced high borrowing costs in recent years due to inflationary pressures and tight monetary policy.
The Ghana Reference Rate (GRR), reaching 19.67% in August 2025, marks a significant 10.05 percentage point drop since the beginning of the year.
In contrast, the same period in 2024 saw a more stable trend, with rates hovering above 29%.
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