The Ghana Reference Rate (GRR) has declined further to 10.06% for April 2026, down from 11.71% in March, extending the downward trend in the benchmark used by banks to price loans.

In a notice issued by the Ghana Association of Banks, the new rate takes effect from April 1, 2026.

The GRR serves as the base benchmark for commercial lending in Ghana and is computed using a formula that incorporates end-of-month Treasury bill rates, the average interbank rate, and the Monetary Policy Rate.

The latest adjustment reflects the continued decline in short-term government securities yields, with Treasury bill rates easing further, alongside improved liquidity conditions in the interbank market.

The rate has now dropped consistently over the past three months—from 14.58% in February to 11.71% in March, before falling further to 10.06% in April.

The sustained decline in the reference rate provides additional room for banks to review lending rates downward, although actual loan pricing will remain dependent on borrower risk profiles, banks’ cost structures, and internal credit assessments.

Any pass-through to lending rates is expected to occur gradually, as banks adjust pricing in line with their loan repricing cycles.

The continued moderation in the GRR highlights the transmission of easing money market conditions into the broader credit market, as funding costs decline and liquidity improves within the financial system.

Meanwhile, average lending rates remain elevated despite the decline in the benchmark, standing at 19.7% as of February 2026, indicating a lag in the full transmission of lower funding costs to borrowers.