BoG releases annual percentage rates of interest charged on loans

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

The data based on figures available as at 28th February, 2018 reveals that the industry average base rate as at February 28, 2018, was 24.5 per cent, representing a drop of 1.1 per cent, when compared to the average rate at end-January 2018.

A statement from the Bank said on a year-on-year basis, the end-February 2018 figure represents a drop of 2.4 per cent, when compared to the same period last year.

The average base rate at the end of December 2017 was 25.7 per cent.

On the deposit front, the average deposit rate at the end of February 2018 was 10.1 per cent, representing a drop of 0.3 per cent, compared to the rate recorded for end-January 2018.

Compared to the end-February 2017 rate of 11.6 per cent, the end-February 2018 figure represents a drop of 1.5 per cent.

The average deposit rate was 10.4 per cent at the end of December 2017.

In all, the list covers 31 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 credit advances.

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

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