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Loan Interest Rates to Drop from August 6

Story Highlights
  • Ghana Reference Rate (GRR) to be updated August 7; expected to drop
  • Awuah refutes claims of banks delaying rate adjustments
  • Borrowers with new or variable-rate loans likely to benefit most

The Chief Executive Officer of the Ghana Association of Banks (GAB), John Awuah, has projected a decline in loan interest rates starting August 6, 2025, following the Bank of Ghana’s (BoG) decision to cut the policy rate by 300 basis points to 25%.

In an interview with Joy Business, Mr. Awuah addressed public concerns about delays in the adjustment of lending rates by commercial banks. He dismissed these concerns, noting that the policy rate accounts for roughly 40% of the components used to determine the Ghana Reference Rate (GRR).

“By next Wednesday, August 7, 2025, commercial banks are expected to publish the new Ghana Reference Rate for August, and we should witness a significant reduction,” he stated.

What is the Ghana Reference Rate (GRR)?

The Ghana Reference Rate was introduced in April 2017 through a collaboration between the BoG and GAB. Initially set at 16.82%, the GRR serves as a benchmark lending rate for all banks and financial institutions in Ghana.

Developed to replace the previous base rate model, the GRR aims to increase transparency in the pricing of credit. It plays a key role in influencing the interest rates applied to various financial products across the industry.

Expected Impact on Loans

Discussions have continued around how policy rate adjustments influence the cost of credit for borrowers.

GAB CEO John Awuah

Mr. Awuah explained that borrowers with variable-rate loans are most likely to see an immediate change in their loan interest rates. Meanwhile, individuals or businesses negotiating new credit facilities stand to fully benefit from the latest rate cut.

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