Ghana Reference Rate Rises to 17.93% in November
By Praisebell Rosemond Larbi
The Ghana Reference Rate (GRR), a key benchmark used by commercial banks to determine lending rates, has risen slightly to 17.93 percent for November 2025, up from 17.86 percent recorded in October.
Data released by the Ghana Association of Banks (GAB) shows that the marginal increase was influenced by upticks in key money market indicators, including the 91-day Treasury bill rate, which rose from 10.50 percent to 10.67 percent, and the interbank rate, which edged up from 20.93 percent to 21.00 percent over the same period.
According to the Association, the change reflects subtle adjustments in short-term market yields and liquidity conditions in the banking sector.
The latest increase follows a sharp drop in the GRR in October, when the benchmark fell by about two percentage points from 19.86 percent in September to 17.86 percent, extending a downward trajectory that has been observed since the beginning of 2025.
At the start of the year, the GRR stood at 29.72 percent in January and peaked slightly at 29.96 percent in February before trending downward in tandem with declining inflation and monetary easing measures by the Bank of Ghana (BoG). By August 2025, the rate had declined to 19.67 percent, reflecting improved financial system stability.
Industry analysts have attributed the October decline largely to reductions in key macroeconomic variables, including falling inflation, lower Treasury bill rates, and the BoG’s aggressive rate-cutting cycle, which saw the Monetary Policy Rate trimmed by over 600 basis points to 21.5 percent this year.
Impact on Borrowers
The marginal increase in the GRR for November could slightly affect borrowing costs and interest rate dynamics in the banking industry.
Since the GRR serves as the benchmark reference rate for all commercial lending, most banks may revise their base lending rates upward, though only marginally.
Borrowers on fixed-rate loans are expected to remain unaffected, but those on variable-rate facilities could see a modest increase in their monthly repayment obligations.
The adjustment comes at a time when many businesses are struggling with tight liquidity conditions and cautious lending by banks, as the BoG continues to prioritize price stability and exchange rate control.
