Ghana's Policy Rate and the Ghana Reference Rate, and Which One Prices Your Loan
One of these is 14.00% and the other is 10.59%. Ghanaian coverage mixes them up constantly. Only one of them decides what you pay.
| Monetary Policy Rate | Ghana Reference Rate | |
|---|---|---|
| Level | 14.00% (May 2026, held) | 10.59% (July 2026) |
| Who sets it | Bank of Ghana Monetary Policy Committee | Computed monthly on a formula, published via the Ghana Association of Banks |
| How often | Roughly every two months | Every month |
| What it is for | Signalling the stance of monetary policy and setting the corridor banks lend and deposit at with the central bank | The base every commercial bank prices its loans off |
| Does it decide your loan rate? | No, only indirectly | Yes. Your rate is the GRR plus your bank's spread, plus fees |
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 341 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.
| Rate | Level | Effective |
|---|---|---|
| Standing lending facility (ceiling) | 15.00% | 20 May 2026 |
| Monetary Policy Rate (centre) | 14.00% | May 2026 |
| Standing deposit facility (floor) | 13.00% | 20 May 2026 |
| Interbank weighted average (actual) | 10.23% | 10 July 2026 |
The interbank rate is currently below the floor of the corridor, at 10.23%. 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.
| Date | Policy rate | Move |
|---|---|---|
| Early 2025 | 28.00% | The peak |
| November 2025 | 18.00% | Cut 350bp |
| January 2026 | 15.50% | Cut 250bp |
| March 2026 | 14.00% | Cut |
| May 2026 | 14.00% | Held. Next meeting 22 July 2026 |
Fourteen percentage points came off the policy rate between early 2025 and May 2026, on the back of a collapse in inflation to 3.4% by April 2026. The Committee then stopped, citing risks to the inflation and growth outlook. Ghana still has the highest policy rate in Africa on the African Development Bank's 2026 count, out of 44 countries.
Your rate is the Ghana Reference Rate plus your bank's spread. If you know the rate you were given and roughly when, this shows you what the same spread implies at today's reference rate. It is the number to take into the branch when you ask for a review.
This assumes your bank keeps the same spread over the reference rate, which is what a variable-rate facility is supposed to do. Fixed-rate loans do not reprice. Banks are not obliged to pass on the full move, and many have not, which is exactly why it is worth asking.
Sources: Bank of Ghana Monetary Policy Committee decisions (28.00% early 2025; 18.00% November 2025; 15.50% January 2026; 14.00% held May 2026, next meeting 22 July 2026). Bank of Ghana, Interbank Interest Rates page, retrieved 12 July 2026 (standing lending facility 15.00% and standing deposit facility 13.00% effective 20 May 2026; interbank weighted average 10.23% on 10 July 2026). Ghana Association of Banks monthly Ghana Reference Rate notices. Ghana Statistical Service inflation, 3.4% for April 2026. African Development Bank, African Economic Outlook 2026, on Ghana's policy rate ranking.