Ghana’s lending rate hits an all-time low of 22.38%; lowest in 12 years

Ghana’s lending rate hits an all-time low of 22.38%; lowest in 12 years

- Ghana's current average lending rate of 22.38% has been recognised as the lowest in 12 years

- It was 23.06% in January, 23.37% in February and 23.40% in March 2020

- Market watchers and analysts have described the fall in the rate as a good sign

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Information available to shows that in April 2020, Ghana recorded its lowest average lending rate of 22.38%.

According to the Summary of Economic and Financial Data by the Bank of Ghana, it is the lowest recorded in 12 years.

In January 2020, it was 23.06%; it increased to 23.37% the following month and 23.40% in March 2020.

READ ALSO: Bank of Ghana supports gov't with GHC10 billion to close fiscal gap

Per a report by, the fall in the average cost of borrowing to less than 23% could be described by many analysts and market watchers as a good sign.

However, access to credit by customers remains the major concern and it is expected that interest charged by savings and loans companies as well as microfinance companies will decline to reduce the default rate among borrowers. earlier reported that the Bank of Ghana maintained its base lending rate at 14.5% after earlier reducing it from 16%, but the cost of borrowing has slightly reduced.

The Central Bank has also reduced the primary reserves from 10% to 8% to enable it support the real sector of the economy in the fight against COVID-19.

Meanwhile, the latest report released by the Bank of Ghana shows that the economy has been in recession since March 2020.

March 2020 was when the government began to actively take steps to combat the spread of the coronavirus.

The Central Bank reported that the economy contracted by 2.2% in March 2020, compared to a growth of 5.6% for the same period in 2019.

READ ALSO: Report shows Ghanaians are losing interest in foreign accounts due to strength of cedi

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