Ghana Holds Africa’s Highest Lending Rate Despite Major Policy Rate Cuts

The African Development Bank’s 2026 African Economic Outlook ranks Ghana first among 44 African nations for the highest lending rate, with an average of 16.33% in April 2026. This follows a sharp reduction in Ghana’s monetary policy rate from 28.0% in early 2025 to 14.0% by May 2026, a cut of roughly 14 percentage points driven by declining inflation.

Despite the policy‑rate cut, the average lending rate remains elevated, falling from 20.58% in January 2026 to 16.33% in April 2026. The Ghana Reference Rate also dropped to 10.06% in April from 15.68% in January. At its May 2026 meeting, the Bank of Ghana kept the policy rate at 14.0% citing inflation and growth risks, and announced a uniform cash reserve ratio of 20% in domestic currency effective 4 June 2026.