Annual Percentage Rates of interest hits 28% - BoG

The Bank of Ghana has released its latest data on Annual Percentage Rates (APR) of interest charged on loans and credit advances and the Average Interest (DI) paid on deposits by banks.

The data is based on figures available as at 30th November, 2016.

According to the data, the industry average base rate as at November 30, 2016, was 28 percent, the same as the average at the end of October, 2016.

However, the average deposit rate inched up, with the data showing an average of 11.7 percent as at the end of November 2016, compared with 11.5 percent at the end of the previous month.

In all, the list covers 30 banks. The APR is the true interest rate banks and non-bank financial institutions charge the public on loans and advances. It reflects the true cost of borrowing and includes charges and commissions levied by banks.

Average interest paid on deposits is the average interest paid by banks on deposits over the period. Base rate reflects the minimum interest rate that can be charged on loans and advances.

The publication of these rates is to promote transparency in the pricing and provision of banking services.

Bank of Ghana aims to promote accountability of its decision making and build understanding of the monetary policy formulation process among stakeholders through the publication of these documents.