Average lending rates fall consistently from January 2024 to 30.71% in July

Average lending rates has fallen consistently but marginally since the beginning of the year, data from the Bank of Ghana has revealed.

The average lending rate began in January 2024 at 32.94% and took a nosedive in February and March 2024 respectively.

It stood at 32.77% in February 2024 and further dropped to 32.35% in March 2024. It again eased in April 2024 to 31.25%.

Subsequently, it went down slightly to 31.10% in June 2024 and then 30.71% in July 2024. It however went up marginally to 30.79% in August 2024.

The Ghana Reference Rate however stood at 29.31% in August 2024, compared with 29.44% in June 2024 the last time the Monetary Policy Committee (MPC).

The Monetary Policy Committee of the Bank of Ghana is announcing a decision on the policy rate today, September 27, 2024.

In the last meeting in July 2024, the Central Bank kept the policy rate unchanged at 29%. It cited some uncertainty regarding the inflation path for the year, given recent exchange rate pressures, upward adjustment in utility tariffs and increases in ex-pump fuel prices.

Average lending rates vary among banks

The average lending rates, however, vary among the banks and the respective sectors they lend to.

Some banks offer loans equivalent to the Ghana Reference Rate, whilst others will charge rates as high as 40%.

This however depends on the risk profile of the customers.