Average lending rates in Ghana decreased to 31.66% in April 2023, down from 35.87% in March 2023.
This translates to an interest rate of 2.63% per month on loans.
Data from the Bank of Ghana reveals that average lending rates were at 35.85% in January 2023 and 36.64% in February 2023.
Despite the decline, lending rates are still considered high.
The recently approved $3 billion International Monetary Fund (IMF) support program is expected to stimulate the economy and further lower lending rates in the coming months.
The Monetary Policy Committee of the Bank of Ghana is scheduled to announce updates on the country's economy, including the key lending rate, on May 22, 2023.
It is anticipated that the policy rate will remain unchanged for the next two and a half months, but the actual cost of borrowing may decrease depending on other factors prioritized by banks when granting loans.
Average lending rates vary across different banks and sectors.
Certain banks offer loans at rates similar to the Ghana Reference Rate of 25.76% as of April 2023, while others charge rates as high as 40%.
These variations depend on the risk profile of customers.
Some banks perceive lending to the agriculture and construction sectors as riskier, resulting in higher credit costs for these industries.
