Ghana reference rate edges up slightly to 17.93% in November

The Ghana Reference Rate (GRR) — the benchmark used by commercial banks to set lending rates — has inched up marginally for November 2025, signaling subtle shifts in Ghana’s money market conditions.

Fresh data from the Ghana Association of Banks shows the GRR rose from 17.86% in October to 17.93% in November, influenced by slight increases in key market indicators.

Treasury bill rates ticked up from 10.50% to 10.67%, while interbank lending rates also climbed from 20.93% to 21%.

The small upward adjustment follows a sharp 2% drop in October, when the GRR fell from 19.86% in September, continuing a broad easing trend observed throughout most of 2025.

Having started the year at 29.72%, the GRR’s steady decline reflects a significant improvement in Ghana’s inflation outlook and monetary conditions.

According to analysts, the slight increase in November is a response to mild pressure in the money market despite an overall decline in rates since the beginning of the year. They noted that October’s reduction was largely driven by falling inflation, lower Treasury bill yields, and the Bank of Ghana’s aggressive monetary easing, which has seen the policy rate cut by more than 600 basis points to 21.5%.

The marginal uptick is expected to influence commercial bank lending rates this month. While customers with fixed-rate loans will remain unaffected, those on variable-rate facilities may experience a modest rise in their monthly repayments.

The development comes as many businesses continue to grapple with limited access to credit amid tight liquidity, even as the central bank works to stabilise prices and stimulate growth.

The Bank of Ghana’s latest Monetary Policy Report shows average lending rates have eased from 26.6% to 24.2%, while yields on money market instruments continue to fall — with the 91-day Treasury bill rate dropping from 13.4% in July to 10.3% in August.

Introduced in 2017, the GRR replaced the old base rate model to create a more transparent and consistent benchmark for loan pricing. The maiden rate, set in April 2017, was 16.82%.

Since then, the GRR has become a key tool guiding interest rate decisions across Ghana’s banking sector.

Although the latest increase is marginal, it will be closely monitored by businesses and consumers alike, as Ghana navigates a cautiously improving — yet still fragile — interest rate environment.