Ghana Reference Rate Rises Slightly to 17.93% in November as Market Pressures Ease

The Ghana Reference Rate (GRR) — the key benchmark used by commercial banks to set lending rates — has edged up slightly to 17.93% for November 2025, up from 17.86% in October, according to new data from the Ghana Association of Banks. The marginal rise reflects subtle shifts in key market indicators, including Treasury bill and interbank lending rates.

Treasury bill yields climbed from 10.50% to 10.67%, while interbank rates also moved upward from 20.93% to 21%. This follows a sharp 2% drop in October, when the GRR fell from 19.86% in September, marking one of the year’s steepest monthly declines. The rate, which started in 2025 at 29.72%, has been steadily decreasing, signaling improving inflation control and a more stable monetary environment.

Analysts say November’s slight uptick underscores renewed pressures in Ghana’s money market, even as the broader lending landscape remains more favorable than at the beginning of the year. They link October’s decline to easing inflation, falling Treasury yields, and the Bank of Ghana’s aggressive rate cuts—a reduction of over 600 basis points that brought the policy rate to 21.5%.

The modest increase in the GRR is expected to have a ripple effect on commercial bank lending rates for November. While customers with fixed-rate loans will see no change, borrowers on variable-rate facilities may experience a slight rise in repayments. This adjustment comes as many businesses still grapple with tight credit conditions despite the central bank’s efforts to boost liquidity and stabilize the economy.

Since its introduction in 2017 to replace the old base rate model, the Ghana Reference Rate has become a key benchmark for pricing credit in the financial sector. The November update, though minimal, will be closely watched by investors, lenders, and consumers navigating Ghana’s gradually easing but still sensitive interest rate environment.

source: citi newsroom