By Toma Imirhe
Following the latest cut by the Bank of Ghana’s Monetary Policy Committee (MPC) to its benchmark Monetary Policy Rate (MPR) which it trimmed it by 250 basis points to 15.50% at its late-January 2026 meeting Ghana’s commercial banking sector has begun to adjust its deposit and lending rate structures amid evolving credit conditions. The MPR cut, the first major policy action of 2026, reflects a broader easing cycle that has seen multiple reductions since mid-2025 and is intended to support economic recovery while preserving price stability.
Responding to the fall in benchmark rates, Ghana’s commercial lenders have begun adjusting their interest rate schedules, particularly for variable-rate loan customers:
According to industry sources, many commercial banks have started trimming interest rates on both existing and new loan facilities in line with the decline in the Ghana Reference Rate, notably since early January. These adjustments have largely affected borrowers on variable interest rate contracts, where repayment terms automatically realign with benchmark movements.
The Ghana Association of Banks (GAB) has noted that the transmission of reference rate cuts into commercial lending rates is progressing across most lenders, even as critics warn that the pace of transmission still needs to accelerate to offer tangible cost relief to businesses.
On the deposit side, while comprehensive data for 2026 remains limited, financial market observers report deposit rate cuts have remained relatively low compared with the declines in lending yields. This suggests banks are balancing a narrowing interest margin with competitive needs for deposit mobilization, especially in a softer monetary environment.
Although specific banks have not publicly detailed broad, sector-wide lending rate cut announcements, analysts assert that larger lenders such as GCB Bank Limited, Ecobank Ghana, Absa Bank Ghana Limited and Stanbic Bank Ghana Limited historically among those with competitive lending portfolios are likely adjusting their loan pricing across products to mirror the lowered Ghana Reference Rate (GRR) and the MPR.
The GRR, which is effectively the base lending rate used by commercial banks to price most loans and influenced by the MPR, interbank and government securities yields, has fallen modestly to 14.58% in early February 2026 from 15.68% in January.
Treasury bill rates, which feed into the GRR calculation, have also declined following the policy adjustment. In the first week of February, yields on 91-day, 182-day and 364-day bills slid to roughly 9.97%, 11.82% and 12.06%, respectively, down from levels reported during late January auctions.
Interbank rates the cost of overnight funds traded between banks have similarly eased, contributing to the lower GRR, although these remain well above the deposit rates, reflecting ongoing liquidity management in the banking system.
Historical data from the Bank of Ghana also shows that average lending rates the headline price of credit across all maturities have steadily declined over the past year. By the end of 2025 these averaged just over 20%, down sharply from around 30% in early 2025.
The MPR, a foundational anchor for money market interest rates in Ghana, started the easing cycle in 2025 from 28% during the first half of the year, to 25% in late July, before it moved down to 21.5%, September and then to 18% by late November, before this latest substantial reduction. This series of cuts increasingly improved liquidity conditions and assisted the downward momentum in key market rates.
Looking ahead, market analysts largely expect the central bank to maintain an easing bias in coming MPC meetings, especially if inflation remains subdued within or near the medium-term target band and economic growth remains on track. This outlook suggests the possibility of further cuts or at least a sustained lower policy rate later in 2026, which would reinforce the downward trajectory for money market rates and promote cheaper credit availability.
While challenges such as deposit rate rigidity and credit risk premiums persist, the policy pivot to a 15.50% MPR and ongoing transmission into commercial bank pricing signals meaningful progress in lowering borrowing costs for Ghana’s businesses a critical element for renewed investment and economic momentum in 2026.
Consumer and corporate borrowers alike will be watching closely for both subsequent MPC decisions and more decisive rate adjustments from major lenders in the weeks ahead.
