Ghana's Policy Rate and the Ghana Reference Rate, and Which One Prices Your Loan

The Ghana Reference Rate is computed from three inputs: Treasury bill rates, the interbank rate, and the Monetary Policy Rate. So the MPR does feed into the GRR, but it is one ingredient of three, which is precisely why the two numbers can and do move apart. Right now the reference rate sits 382 basis points below the policy rate.

The policy rate is the centre of a band. The Bank of Ghana will lend to a commercial bank overnight at 100bp above it, and will take a bank's money overnight at 100bp below it. Those two standing facilities are the ceiling and floor for the interbank market, which is why the interbank rate sits between them.

The interbank rate is currently below the floor of the corridor, at 10.20%. That is a sign of a banking system awash with cash: banks have more liquidity than they need and are lending it to each other cheaply rather than parking it at the central bank. It is also part of why the reference rate has fallen so far below the policy rate.

Fourteen percentage points came off the policy rate between early 2025 and March 2026, on the back of a collapse in inflation to about 3% in the early months of 2026. The Committee then stopped, citing risks to the inflation and growth outlook, and has held at 14.00% at both meetings since. Inflation has since picked back up to 5.0% in August 2026. Ghana still has the highest policy rate in Africa on the African Development Bank's 2026 count, out of 44 countries.

The next decision is due on 24 September 2026, when the Committee concludes its September meeting. Market commentary ahead of it has pointed to a possible cut, so treat the 14.00% above as correct up to that date and check back after it.