Average lending rate closed 2023 higher at 33.75% per annum, according to data from the Bank of Ghana.
This equivalent to 2.81% per month on loans charged by the banks.
According to the January 2024 Summary of Economic and Financial Data, the average lending rate stood at 35.58% recorded in December 2022
In January 2023 it inched up to 35.85% and subsequently to 36.64% in February 2023.
Meanwhile, the Ghana Reference Rate stood at 32.16% in December 2023.
The Monetary Policy Committee of the Bank of Ghana is set to announce developments in the economy with a key decision on the Policy Rate today January 29, 2024.
Ahead of the announcement, some analysts and research firms expect the policy rate to go down. UK-based Fitch Solutions has predicted an 800 basis points in the base lending rate of the Bank of Ghana to 22% in 2024.
This will stimulate private sector consumption and reduce the cost of borrowing.
In July 2023, the Bank of Ghana increased its key interest rate to 30% to tighten inflation. It further kept it unchanged in September 2023 and November 2023 respectively.
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.