Consumers and businesses in Ghana can expect noticeable relief in borrowing costs following a sharp cut in the Ghana Reference Rate (GRR). On August 6, 2025, the Ghana Association of Banks confirmed that the GRR had fallen from 23.69% in June to 19.67% in August — representing a 10.05 percentage point decrease.
Simultaneously, the Bank of Ghana implemented a historic 300-basis-point cut in its Monetary Policy Rate — reducing it to 25% — marking the largest reduction in the central bank’s history. This move reflects a cooling inflation rate, now at 13.7%, and an improving macroeconomic outlook.
John Awuah, CEO of the Ghana Association of Banks, pledged that borrowers with variable-rate loans will benefit almost immediately, while new loan agreements will be written at the lower rate. “If you have a loan linked to the Ghana Reference Rate, then you should expect your loan to go down by that margin,” he stated.
Economists and industry watchers see this as a positive step toward economic revival, encouraging business expansion and easing access to credit—especially for SMEs that have long struggled with high interest rates.
