Average lending rate fall 2.59% to 21.10% since December 2019 – Canada Ghana Chamber of Commerce

Average lending rate fall 2.59% to 21.10% since December 2019

The average lending rate or cost of loans has fallen by 2.59% to 21.10% within the last one year, the Bank of Ghana has revealed in its January 2020 Summary of Financial and Economic Data.

But between October 2020 and December 2020, interest charged on loans went down by 0.16%.

Though the cost of borrowing is still high compared to the nation’s peers on the African continent, it has gone down by about 10% since Dr. Ernest Addison’s administration took over the reins of Bank of Ghana.

According to the data from the Bank of Ghana, Ghana’s reference rate has fallen by 1.34% within the last one year, from 16.11% in December 2019 to 14.77% in December 2020.

The cost of credit however varies among the commercial banks, as they price their rate based on their risk analysis and also the risk of customers.

Some banks offer as low as 17% for lending, whilst others have rates as high as about 28%.

When it comes to interest rates on Government of Ghana securities, the rates have also dropped but marginally.

For instance, the yield on 91-day Treasury bill has fallen by 0.61% in December 2019 to 14.08% in December 2020.

Also, interest on the 182-day T-Bill has dropped by 1.02% in the last one year to 14.13% in December 2020.

Fitch Solutions forecasts ease in Ghana’s interest rates

Research arm of rating agency, Fitch, earlier forecast an ease in interest rates in the country, from early next year.

It linked that to a further fall in the country’s inflation rate next year, which then will remain in the single-digit bracket. It is projecting an end-year inflation of 8.5% for 2021.

Senior Country Risk Analyst for Sub Saharan Africa, William Attwell told Joy Business a further drop in inflation will trigger monetary policy easing and interest rates.

“We would expect monetary policy easing during 2021 because of a further fall in inflation. We’re expecting inflation to ease further next year and that will facilitate that process too. That’s really an austere on the monetary front for Ghana”


Latest Posts

Golden Star Resources to invest $ 15 million in Wassa underground mine

April 30, 2021

Minister calls for establishment of Ghana- Canada Business Council

April 30, 2021

Ghana’s GDP Ranked 73rd Globally

April 30, 2021

Banks write-off GH¢1.1bn as bad debt

April 30, 2021

Petroleum Commission, Tullow holds Capacity Building Progamme for IGCs

April 30, 2021

Ghana’s credit ratings fail to improve

April 30, 2021

Canadian High Commission launches projects to support Ghanaian women

March 31, 2021

Asanko Mines stocks libraries of schools in Amansie West, Amansie South

March 31, 2021

Nissan committed to developing auto-industry

March 31, 2021

Ghana Raises $3bn On International Debt Capital Markets

March 31, 2021

Nana Invites Spanish Investors

March 31, 2021

Building an A-List Freight Forwarding and Logistics Company after cutting short his education … The Conship 25 years story

March 02, 2021

Kasapreko, Ghandour begin export under AfCFTA

March 02, 2021

Revenue from international trade exceeds target by 176% in Q3 2020

March 02, 2021

Ghana slapped with $137.9million judgement debt over power purchase contract

March 02, 2021

Toyota hikes profit forecast 54%, shrugs off global chip supply issues

March 02, 2021

Airlines passengers to pay $3,500 for flouting COVID-19 – Oppong Nkrumah

March 02, 2021

Average lending rate fall 2.59% to 21.10% since December 2019

February 02, 2021

PCR test at KIA to be reduced to $50 from $150 – Health Minister-designate

February 02, 2021

Covid-19 spending pushes Ghana’s debt to GH¢286bn

February 02, 2021



Platinum Members