GRR Inches Up Amid Slight Increases in Treasury and Interbank Rates
The Ghana Reference Rate (GRR), the key benchmark for determining lending rates by commercial banks, has inched up slightly for November 2025.
Data from the Ghana Association of Banks indicates that the GRR increased to 17.93%, up from 17.86% recorded in October. The marginal rise, according to market sources, was influenced by upticks in key indicators such as Treasury bill rates — which rose from 10.50% to 10.67% — and interbank rates, which edged up from 20.93% to 21%.
Trend and Context
In October, the GRR had declined by 2% from 19.86% in September, continuing a downward trend observed since the beginning of the year. The benchmark rate stood at 29.72% in January, rose marginally to 29.96% in February, and gradually eased to 19.67% by August 2025.
Analysts have attributed the earlier declines to reductions in inflation, Treasury bill yields, and the Bank of Ghana’s policy rate, which was lowered by more than 600 basis points to 21.5%.
Possible Impact
The slight uptick in the GRR may translate into a marginal increase in lending rates for November, as commercial banks typically use the rate as a reference point in pricing loans. While borrowers with fixed-rate facilities will remain unaffected, those with variable-rate loans could experience a modest rise in their monthly interest obligations.
The adjustment comes amid ongoing liquidity constraints in the banking sector — a consequence of the central bank’s monetary tightening measures aimed at stabilising the cedi and curbing inflationary pressures.
According to the Bank of Ghana’s latest Monetary Policy Report, average lending rates have declined from 26.6% to 24.2%, reflecting an overall easing in credit conditions. Similarly, yields on money market instruments have fallen, with the 91-day Treasury bill rate dropping from 13.4% in July to 10.3% in August 2025.
Introduced in 2017 by the Bank of Ghana in collaboration with the Ghana Association of Banks, the Ghana Reference Rate was designed to enhance transparency and consistency in the pricing of loans. The maiden rate, set in April 2017, was 16.82%.
The GRR remains a critical tool for ensuring fairness in lending and continues to serve as a benchmark for interest rate determination across Ghana’s financial system.
