By Kofi Ahovi
Universal banks continue to slash down their base lending rates, in response to the reduction in the Bank of Ghana’s (BoG) policy rate which was reduced by 50 basis points from 13.5% to 13%.
The latest banks to reduce their base rates are Barclay Bank, Sahel Sahara Bank, The Trust Bank (TTB), and Stanbic Bank
Barclay Bank’s new base rate is 18.00% down from 22.00% representing 4 percentage points drop, this is the lowest rate so far, while Sahel Sahara Bank’s base lending rate stands at 25.25% from 26.00% representing a reduction 75 basis points. The Trust Bank now has a rate of 23.5% down from 25.00%, a decline of 150 basis points. Energy Bank has also announced a base lending rate of 23.00%
Already Agricultural Development Bank, (ADB), Unibank, Zenith Bank and UT Bank have all reduced their base lending rates. ADB reduced its by 195 basis points to 20.00%, Unibank reduced its rate from 25.95% to 24.95% representing a drop of one percentage point reduction, UT Bank marginally reduced its rate from 25.95% to 25.90%. Zenith bank on the other hand slashed its rate by 155 basis points to 23.95% from 25.50%.
This is the third round of base rates cuts so far this year by Ghana’s universal banks. Some of the banks slashed their rates weeks before the announcement of the reduction of the policy rate by the BoG. This was due to the favourable economic condition and changes in the banking sector at that time. Their actions were proactive to the signals usually sent by the BoG through its policy rate.
Institutions such as the Association of Ghana Industries (AGI) and the Private Enterprise Foundation (PEF) see the reduction as boost to production, as they have consistently complained about the relatively high interest rates, despite the consistent decline in the central bank’s policy rate over the past years.
Universal banks continue to slash down their base lending rates, in response to the reduction in the Bank of Ghana’s (BoG) policy rate which was reduced by 50 basis points from 13.5% to 13%.
The latest banks to reduce their base rates are Barclay Bank, Sahel Sahara Bank, The Trust Bank (TTB), and Stanbic Bank
Barclay Bank’s new base rate is 18.00% down from 22.00% representing 4 percentage points drop, this is the lowest rate so far, while Sahel Sahara Bank’s base lending rate stands at 25.25% from 26.00% representing a reduction 75 basis points. The Trust Bank now has a rate of 23.5% down from 25.00%, a decline of 150 basis points. Energy Bank has also announced a base lending rate of 23.00%
Already Agricultural Development Bank, (ADB), Unibank, Zenith Bank and UT Bank have all reduced their base lending rates. ADB reduced its by 195 basis points to 20.00%, Unibank reduced its rate from 25.95% to 24.95% representing a drop of one percentage point reduction, UT Bank marginally reduced its rate from 25.95% to 25.90%. Zenith bank on the other hand slashed its rate by 155 basis points to 23.95% from 25.50%.
This is the third round of base rates cuts so far this year by Ghana’s universal banks. Some of the banks slashed their rates weeks before the announcement of the reduction of the policy rate by the BoG. This was due to the favourable economic condition and changes in the banking sector at that time. Their actions were proactive to the signals usually sent by the BoG through its policy rate.
Institutions such as the Association of Ghana Industries (AGI) and the Private Enterprise Foundation (PEF) see the reduction as boost to production, as they have consistently complained about the relatively high interest rates, despite the consistent decline in the central bank’s policy rate over the past years.
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