Kofi Ahovi

By Kofi AHOVI Universal banks in the country have begun reducing the base rates to reflect economic condition and changes in the banking sector. Traditionally, the banks turn to either up or down their base rates in response to signals sent by the Bank of Ghana (BoG) through its policy rate. Ghana Commercial Bank (GCB), Stanbic Bank, Bank of Baroda have all reduced their base to 20.50% from 21.5%, 21.95% from 23.95% and 21.75% from 23.00% respectively. UT bank has also reduced its average lending rates to 25.95% from 26.90%. The average reduction in the base lending rates is 1.55%. More banks are expected to follow this trend in the coming weeks. The central bank’s policy rate is currently at 13.5% since June last year. The policy rate is the rate at which the central bank does overnight lending to universal banks in the country. It serves as a basis for the banks in setting their respective base lending rates, as well as lend to their most favoured customers. Banks at that time wer...

By Kofi AHOVI Universal banks in the country have begun reducing the base rates to reflect economic condition and changes in the banking sector. Traditionally, the banks turn to either up or down their base rates in response to signals sent by the Bank of Ghana (BoG) through its policy rate. Ghana Commercial Bank (GCB), Stanbic Bank, Bank of Baroda have all reduced their base to 20.50% from 21.5%, 21.95% from 23.95% and 21.75% from 23.00% respectively. UT bank has also reduced its average lending rates to 25.95% from 26.90%. The average reduction in the base lending rates is 1.55%. More banks are expected to follow this trend in the coming weeks. The central bank’s policy rate is currently at 13.5% since June last year. The policy rate is the rate at which the central bank does overnight lending to universal banks in the country. It serves as a basis for the banks in setting their respective base lending rates, as well as lend to their most favoured customers. Banks at that time wer...