The Ghana Reference Rate (GRR), the benchmark used by commercial banks to determine lending rates has recorded a slight increase for November 2025.

Fresh data from the Ghana Association of Banks shows the GRR rose marginally from 17.86% in October to 17.93% in November, influenced by small movements in key market indicators.

Treasury bill rates increased from 10.50% to 10.67%, while interbank lending rates rose from 20.93% to 21%.

This comes after a sharp 2% decline in October, when the GRR fell from 19.86% in September, extending the easing trend seen through most of the year.

The rate, which began 2025 at 29.72%, has gradually declined to its current level, reflecting broader improvements in inflation and monetary conditions.

Industry analysts say the slight uptick in November reflects recent pressures in the money market, even as the overall rate environment remains significantly lower than at the start of the year.

They attribute October’s decline to reductions in inflation, falling Treasury bill yields, and the Bank of Ghana’s aggressive monetary easing, which has seen the policy rate cut by more than 600 basis points to 21.5%.

The marginal rise in the GRR is expected to influence banks’ lending rates for the month.
Commercial banks may adjust loan pricing slightly upward, especially for customers on variable-rate facilities.

Borrowers with fixed-rate loans will not be affected by the adjustment, but those with variable-rate agreements may experience a small increase in repayments.

The development comes at a time when businesses continue to face tight credit conditions amid a liquidity squeeze, despite the Bank of Ghana’s efforts to stabilise inflation and the broader economy.

According to the latest Monetary Policy Report, average lending rates have declined from 26.6% to 24.2%, reflecting an overall loosening trend. Yields on money market instruments have also eased, with the 91-day Treasury bill rate dropping from 13.4% in July to 10.3% in August.

Introduced in 2017, the GRR replaced the old base rate model to offer a more transparent benchmark for pricing loans.

The maiden rate, set in April 2017, was 16.82%.

Since then, it has served as a key tool in guiding interest rate decisions across Ghana’s financial sector, helping ensure consistency in how banks price credit.