Ghana Reference Rate Rises to 10.61% in August
By Praisebell Rosemond Larbi
The Ghana Reference Rate (GRR), the benchmark used by commercial banks to determine lending rates, is projected to increase marginally to 10.61% in August 2026, from 10.59% recorded in July, signalling a possible slight rise in borrowing costs for customers with variable-rate loans.
The expected adjustment, based on calculations using the industry-approved formula for determining the Ghana Reference Rate and prevailing market data, represents an increase of 0.02 percentage points during the month.
The marginal rise is mainly attributed to an increase in the 91-day Treasury bill rate, which moved from 5.73% to 5.78% over the review period.
The Treasury bill rate is one of the key components used in calculating the Ghana Reference Rate and reflects movements in government securities markets. The other major factors, including the Bank of Ghana’s Monetary Policy Rate and the interbank lending rate, remained unchanged during the period.
The Ghana Reference Rate is calculated using these three variables and serves as the base benchmark that banks use when pricing loans to customers. Changes in the benchmark can therefore influence the cost of credit, particularly for borrowers whose loans are linked to variable interest rates.
For customers with floating or variable-rate facilities, the latest increase could result in a modest adjustment in monthly loan repayments depending on the pricing structure of their individual agreements.
However, borrowers with fixed-rate loans are not expected to experience any immediate impact from the change.
Despite the slight rise in the GRR, lending conditions within the banking sector continue to show signs of improvement. Industry data indicate that average lending rates have declined to around 16%, while some customers are accessing credit at rates ranging between 11% and 12.5%, reflecting stronger competition among banks and improved risk conditions for certain categories of borrowers.
The movement in the Ghana Reference Rate has been mixed throughout 2026. The benchmark stood at 11.71% in March before declining sharply to 10.06% in April. It eased further to 10.03% in May and 10.02% in June, before increasing to 10.59% in July. The projected 10.61% for August represents another marginal upward movement.
The Ghana Reference Rate was introduced in 2017 by the Bank of Ghana in collaboration with the Ghana Association of Banks to provide a transparent and consistent benchmark for pricing loans within the financial sector.
While the latest increase is relatively small, analysts say it highlights the sensitivity of borrowing costs to movements in market rates, even as broader lending conditions continue to improve. The development comes at a time when businesses and households remain closely monitoring credit conditions as economic activity strengthens and inflation trends remain relatively stable.
