The average lending rate in Ghana declined significantly to 19.7 percent in February 2026, although borrowing costs remain relatively high for businesses and households.
The latest data from the Bank of Ghana shows a sharp year-on-year decline from 30.12 percent recorded in February 2025, reflecting easing financial conditions within the banking sector.
According to the central bank’s figures, the average lending rate began trending downward between January and May 2025, before recording a slight uptick in June 2025. However, the rate resumed its downward trajectory for the remainder of the year.
In March 2025, the average lending rate stood at 29.18 percent before dropping to 27.40 percent in April and 26.90 percent in May. It edged up slightly to 27.0 percent in June, but fell again to 26.59 percent in July and continued declining to 20.45 percent by December 2025.
Despite the steady decline, analysts and market watchers had anticipated a sharper reduction in lending rates, especially following the steep fall in treasury bill rates, which have recently dropped to single-digit levels.
Meanwhile, the Ghana Reference Rate, a key benchmark used by banks to price loans, has also declined sharply to 14.58 percent in February 2026, compared to 29.96 percent in February 2025.
The decline follows monetary policy measures by the central bank aimed at stabilising the macroeconomic environment. In January 2025, the Bank of Ghana reduced its policy rate to 15.50 percent from 18 percent, citing improvements in economic conditions.
The Monetary Policy Committee (MPC) attributed the improving outlook to sustained tight monetary policy, fiscal consolidation, and a significant build-up in the country’s international reserves.
However, lending rates continue to vary widely across the banking sector. While some banks offer loans close to the Ghana Reference Rate, others charge rates as high as 28 percent, depending largely on the risk profile of borrowers and the sectors they operate in.
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