Financial Institutions Pledge Reduced Loan Rates for Companies and Families

The Ghana Association of Banks (GAB) is promising lower borrowing costs for businesses and households.

GAB made the remarks during a visit to the Ceremonial Gardens of Jubilee House on Monday August 11, 2025, where they laid a wreath in honour of the eight people who tragically lost their lives in last week’s military helicopter crash.

The association stressed that lenders are expected to fully pass on the reduction to customers, in line with the Ghana Reference Rate’s downward trend monetary policy rate cut.

Chief Executive Officer of the Ghana Association of Banks, John Awuah, in a sideline interview with the media noted that with the policy rate reduced to 25% and the Ghana Reference Rate falling to 19.67% in August from 29.72% in January, borrowers with loans pegged to the Ghana Reference Rate (GRR) should expect a corresponding drop in their lending rates.

“The reference rate has also reduced which is basically taking up the full load of the reduction in the policy rate. So if you are borrower from a bank and your facility rate is benchmarked to the Ghana Reference Rate. You should see the full weight of that reduction in your new lending rate,” he said.

The Ghana Reference Rate (GRR) reaching 19.67% in August 2025 marks a significant 10.05 percentage point drop since the beginning of the year.

Comparatively, the same period in 2024 saw a more stable trend, with rates hovering above 29%.

The current GRR is now firmly below its 2024 levels, signalling improved macroeconomic stability, declining inflation, and monetary easing by the Bank of Ghana.

Recent macroeconomic developments also influenced the Monetary Policy Committee of the Bank of Ghana to slash the policy rate from 28% to 25%.