Ashanti Business Owners Association commends BoG for reducing the Ghana Reference Rate

By Tina Moses Sam
The Ashanti Business Owners Association (ABOA) has commended the Bank of Ghana (BoG) and the Ghana Association of Banks for their collaborative efforts in reducing the Ghana Reference Rate (GRR) from 14.58% to 11.71%.
in a statement by ABOA, the timely adjustment represents a strategic and well-calibrated intervention designed to lower borrowing costs for businesses and households.
The reduction signals a strong commitment to restoring credit affordability and stimulating private-sector growth, particularly for SMEs facing tight liquidity and high financing costs, a statement they issued said.
As a key benchmark influencing commercial lending rates, the statement said, the Ghana Reference Rate plays a vital role in shaping credit pricing within the banking sector. Its downward revision is expected to contribute to:
-Improved access to credit for businesses, especially in the manufacturing, trade, and agribusiness sectors; -Reduced debt servicing burdens for existing borrowers;
– Augment working capital flows to business operations and growth;
-Increased investor confidence in Ghana’s financial sector reforms.
“We urge commercial banks to ensure that the reduction in the Ghana Reference Rate is effectively passed on to final borrowers in a transparent and timely manner, so that the intended benefits are fully realised across the productive sectors of the economy.
“We remain committed to constructive engagement with policymakers and financial sector stakeholders to advocate for reforms that promote competitive financing, improve productivity, and foster inclusive economic growth,” the statement said.
Ghana’s Reference Rate (GRR), the key benchmark used by commercial banks to price loans, has dropped sharply to 11.71% for March, down from 14.58% in February.
The decline marks one of the most significant reductions in recent times in the benchmark used to determine the cost of credit.
Industry players say the reduction in Treasury bill rates was partly influenced by the government’s fiscal consolidation agenda, which has limited domestic borrowing, as well as by excess liquidity in the banking sector.
The Ghana Reference Rate for March 2026 was shaped by the following variables:
• Treasury Bill rates (end-February)
• Interbank rate (February average)
• Monetary Policy Rate
The latest decline could trigger one of the biggest drops in lending rates between now and April 3, 2026.
Average lending rates are currently hovering around 22%. With the reduction in the benchmark rate, borrowers could potentially secure loans at around 19%, depending on their risk profile and negotiations with banks.
Borrowers with very strong credit histories may even access loans at single-digit rates.
There are already reports that some commercial banks are offering facilities at the Ghana Reference Rate minus five percentage points for their most creditworthy customers.