The Ghana Reference Rate (GRR) has declined to 11.71% for March 2026, down from 14.58% in February, marking one of the steepest month-on-month reductions in the benchmark used by banks to price loans.
In a notice issued by the Ghana Association of Banks, the new rate takes effect from March 4, 2026.
The GRR serves as the base benchmark for commercial lending in Ghana and is computed using a formula that incorporates end-of-month Treasury bill rates, the average interbank rate and the Monetary Policy Rate.
The latest adjustment reflects the continued decline in short-term government securities yields, with Treasury bill rates falling into single-digit territory at the end of February.
The moderation in yields, alongside easing interbank conditions, contributed to the downward revision of the benchmark.
The rate had already been reduced from 15.58% in January to 14.58% in February before the sharper adjustment in March.
The reduction in the reference rate provides room for banks to review lending rates downward, although final pricing will continue to depend on individual borrower risk profiles, cost structures and internal credit assessments.
According to recent industry data, average lending rates in the banking sector currently hover around 22%. Any adjustment in lending rates following the new benchmark is expected to be reflected in loan repricing cycles in the coming weeks.
The movement in the GRR underscores the transmission of lower money market rates into the broader credit market, as funding costs ease amid improved liquidity conditions in the financial system.
