GRR Falls to 15.9% in December as Monetary Policy Easing Pushes Benchmark Rate Downward
The Ghana Reference Rate (GRR) has posted a significant decline for December 2025, dropping to 15.9% from the 17.93% recorded in November, according to newly published data from the Ghana Association of Banks (GAB).
The 200-basis-point reduction reflects improvements in the core variables used in computing the benchmark rate, with the sharp cut in the Monetary Policy Rate (MPR) by 350 basis points to 18% cited by several commercial banks as the primary driver. Treasury bill rates and interbank market rates also recorded marginal declines during the period, contributing to the downward adjustment.
The latest drop follows a marginal uptick in November when the GRR increased to 17.96% from 17.86%, influenced by slight rises in key indicators. Treasury bill rates edged up from 10.50% to 10.67%, while the interbank rate moved from 20.93% to 21%.
Despite the temporary rise, the broader trend through 2025 has been downward. In October, the GRR fell by 2%, declining from 19.86% in September. Having peaked at 29.96% in February following a January level of 29.72%, the benchmark has steadily moderated throughout the year, reaching 19.67% in August.
The notable fall in the GRR is expected to influence lending behaviour across the commercial banking sector. Lending rates for December are projected to reflect the new 15.9% benchmark, offering some relief to borrowers negotiating new credit facilities.
While fixed-rate loan holders will not experience changes, customers with variable-rate agreements may benefit from marginal downward adjustments, dependent on individual bank pricing models.
The decline comes at a time when credit access remains tight, constrained by liquidity pressures and ongoing policy measures aimed at stabilising the macroeconomic environment. The latest Monetary Policy Report shows average lending rates easing from 26.6% to 24.2%, signalling an improving credit market.
Money market instruments have also seen yield declines, with the 91-day Treasury bill rate falling from 13.4% in July to 10.3% in August 2025.
Introduced in 2017 through a joint initiative by the Bank of Ghana and the Ghana Association of Banks, the Ghana Reference Rate was established to provide a transparent and standardised benchmark for loan pricing across the financial sector. The maiden rate, set in April 2017, stood at 16.82%.
Since its introduction, the GRR has served as a central guide for commercial bank lending decisions, replacing the previously opaque base rate system and enhancing consistency in the determination of credit pricing.
