Business News of 2026-09-02
Borrowing costs set to ease as Ghana Reference Rate drops to 10.18%
The cost of borrowing could ease further in September after the Ghana Reference Rate (GRR) fell to 10.18%, from 10.61% in August, giving commercial banks more room to reduce lending rates for businesses and households.
The latest rate represents a decline of 0.43 percentage points.
The GRR is the benchmark used by banks when setting interest rates on loans. Banks add other charges based on factors such as the type of loan and the risk associated with lending to a customer.
This means the decline does not automatically translate into a 0.43 percentage-point reduction in every borrower's interest rate. However, it gives banks more room to offer cheaper loans, particularly to customers considered less risky.
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The decline could be particularly beneficial to businesses, including small and medium-sized enterprises (SMEs), that rely on bank loans to operate and expand. Lower borrowing costs could make it cheaper to finance stock, equipment and other business needs.
Individuals seeking new loans could also benefit if banks reduce their lending rates.
Customers with loans whose interest rates are linked to market conditions may also see some relief. However, those with fixed-rate loans are unlikely to experience an immediate change.
The latest decline continues the general downward trend in the GRR this year. The rate stood at 11.71% in March before falling to 10.06% in April and 10.03% in May. It later rose to 10.61% in August.
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It has now fallen again to 10.18% in September.
For borrowers, the decline is a positive sign, but the extent of any savings will depend on whether individual banks reduce their lending rates.
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