Ghana Reference Rate falls to 10.04% in October as borrowing costs ease

In October 2026, the Ghana Reference Rate (GRR) slipped to 10.04%, marking a decrease from 10.18% in the previous month, according to calculations by JOYBUSINESS using industry-standard methods and market data. This decline reflects a broader pattern of easing borrowing costs in Ghana's financial sector. The reduction was primarily driven by minor drops in Treasury bill rates and interbank market rates, despite the Monetary Policy Rate staying constant at 14% since the first quarter of 2026.

Government borrowing trends and increased competition among banks through interbank market dynamics have also played significant roles in shaping the GRR. While borrowers with variable-rate loans may benefit from the lower costs, those with fixed-rate loans are unlikely to see immediate changes. The development is expected to encourage new credit applications as banks vie to offer competitive rates.

Throughout 2026, the GRR has experienced fluctuations, starting at 11.71% in March and reaching a high of 10.61% in July before the recent decline to 10.04% in October, continuing the overall downward trend in benchmark rates. Established in 2017 by the Bank of Ghana with the Ghana Association of Banks, the GRR serves as a uniform benchmark for commercial banks to set lending rates across the sector.