Ghana reference rate plunges to 11.71% in March 2026

The Ghana Association of Banks has announced a sharp drop in the Ghana Reference Rate (GRR) to 11.71% for March 2026, down from 14.58% in February — one of the steepest month-on-month declines recorded in recent times.

In a notice issued by the Association, the new rate took effect on March 4, 2026.

The GRR serves as the benchmark base rate used by banks in pricing loans. It is calculated using a formula that factors in end-of-month Treasury bill rates, the average interbank lending rate, and the Monetary Policy Rate.

The latest decline follows a sustained drop in short-term government securities yields, with Treasury bill rates falling into single-digit levels by the end of February. Easing interbank market conditions and improved liquidity within the financial system also contributed to the downward adjustment.

The benchmark had already eased from 15.58% in January to 14.58% in February before recording the sharper cut in March.

The reduction creates potential room for commercial banks to lower lending rates. However, actual loan pricing will still depend on individual borrower risk profiles, banks’ cost structures, and internal credit assessments.

Industry data indicates that average lending rates in Ghana’s banking sector remain around 22%. Any changes to lending rates in response to the new benchmark are expected to take effect gradually as banks reprice loans in the coming weeks.

The movement in the Ghana Reference Rate highlights the transmission of declining money market rates into the broader credit market as funding costs continue to moderate.