Commercial banks are expected to reduce lending rates in the coming days after Ghana’s Reference Rate (GRR) dropped sharply to 11.71% for March, from 14.58% in February.
The latest figure represents one of the steepest single-month declines in recent years in the benchmark used by banks to price loans.
To be sure, the sharp fall was driven primarily by a significant decline in Treasury bill rates into the single-digit range, coupled with a marginal easing in the interbank rate.
What Drove the March 2026 GRR?
The March rate was determined by three key variables:
- Treasury bill rates (end-February)
- Average interbank rate (February)
- Monetary Policy Rate
Industry analysts attribute the drop in Treasury bill yields partly to the government’s fiscal consolidation programme, which has reduced domestic borrowing, as well as excess liquidity within the banking sector.
What It Means for Borrowers
The decline in the GRR could trigger one of the biggest reductions in lending rates between now and April 3, 2026.
Average lending rates are currently hovering around 22%. With the benchmark now at 11.71%, borrowers could potentially negotiate loans at around 19%, depending on their risk profile and discussions with banks. Customers with strong credit histories may even access facilities at single-digit rates.
There are already indications that some commercial banks are offering loans at the Ghana Reference Rate minus five percentage points to their most creditworthy clients.
Loans contracted in February 2026 on variable rates are likely to see further reductions in the coming days, lowering debt servicing costs. However, borrowers on fixed-rate facilities will not benefit from the adjustment. Those on variable-rate arrangements may see revisions depending on their bank’s pricing model.
Since the GRR serves as a transparent benchmark for loan pricing, banks are expected to revise their lending rates downward from the February average of about 22%.
The development comes at a time when many businesses continue to grapple with tight credit conditions due to liquidity constraints arising from measures aimed at curbing inflation and stabilising the economy.
President of the Ghana National Chamber of Commerce and Industry, Stephane Miezan, has previously indicated that beyond high borrowing costs, limited access to credit remains a major challenge for businesses. He warned that constrained financing conditions have contributed to the collapse of some firms.
Background
The Ghana Reference Rate, introduced in 2017 by the Bank of Ghana in collaboration with the Ghana Association of Banks, replaced the old base-rate system to promote transparency, consistency and fairness in loan pricing.
The maiden rate, announced in April 2017, stood at 16.82%.
In recent months, the benchmark has been trending downward. It eased from 15.58% in January 2026 to 14.58% in February, and has now fallen sharply to 11.71% in March.
In December 2025, the GRR dropped to 15.9% following a 350-basis-point reduction in the Monetary Policy Rate to 18%, alongside declining Treasury bill rates. Earlier, in November 2025, the rate had edged up to 17.96% from 17.86% on the back of increases in Treasury bill and interbank rates.
Over the course of 2025, the GRR generally trended downward, falling significantly from 29.72% in January to 19.67% by August, reflecting broader improvements in macroeconomic conditions.
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