Ghana’s Average Lending Rate Falls to 24.15% in August, Lowest in Over a Year

Ghana’s average lending rate eased sharply to 24.15% in August 2025, down from 26.59% in July, according to central bank data, signalling a continued decline in borrowing costs across the financial sector.

The average lending rate represents the mean interest charged by commercial banks on new loans issued during a given month. It is a key indicator of the cost of credit in the economy and directly affects how much businesses and households pay when they borrow from banks.

The latest figure marks the lowest level in more than a year, extending a steady downtrend from 30.79% in August 2024. Lending rates had hovered around 30% for much of late 2024 and early 2025, before beginning a sustained decline from March this year. 

Since then, rates have fallen by more than six percentage points, reflecting improving liquidity conditions and easing inflation pressures that have allowed banks to lower their loan charges.

The drop is expected to ease pressure on businesses and households, making credit more affordable for expansion, working capital and consumption. Lower borrowing costs could also help revive private sector activity, support job creation, and boost economic confidence at a time when Ghana is seeking stronger growth momentum. 

At the same time, banks may see thinner interest margins if lending rates fall faster than deposit rates, while government borrowing costs could also decline as yields on treasury securities adjust lower.

The decline comes ahead of the Bank of Ghana’s recent 350 basis point policy rate cut announced in September 2025, which analysts say could drive further reductions in loan rates in the coming months, making credit even more accessible to households and businesses.

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