Ghana base lending rate remains one of the highest on the African continent despite a steep fall in the Bank of Ghana’s policy rate over the past year, according to the African Development Bank’s 2026 African Economic Outlook.
The report places Ghana joint eighth among 44 African economies with the highest policy rates, alongside The Gambia, with both countries’ policy rates at 14.0%.
Ghana’s position comes after a period of aggressive rate easing, reflecting a broader continental shift as inflation pressures cooled and central banks adjusted to improving macroeconomic conditions.
The AfDB’s ranking shows that several countries still maintain significantly higher monetary policy settings. Zimbabwe tops the list at 30.00%, followed by Nigeria at 26.50% and Malawi at 24.00%.
Egypt ranks next at 19.00%, while Angola stands at 17.00%. Sierra Leone is listed at 16.75% and Liberia at 16.25% to complete the top seven.
By contrast, the AfDB noted that Francophone West African countries that share the CFA currency continue to record the lowest policy rate levels in Africa, underscoring the region’s comparatively cheaper benchmark financing conditions.
Ghana recorded one of the sharpest policy rate cuts in 2025
The AfDB report said Ghana posted the sharpest decline in the policy rate in 2025, as the Bank of Ghana moved to align rates with fast-easing inflation and a calmer macro environment.
According to the statement, the central bank cut the policy rate by 9.0 percentage points between December 2024 and December 2025.
It added that between January 2025 and May 2026, the base lending rate in Ghana fell by 14.00%, reflecting the scale of the easing cycle.
The AfDB attributed rate cuts across Africa to disinflation trends. “Monetary policy stances in 2025 were shaped by the dynamics of inflation across the continent. The cooling off inflationary pressures provided impetus for interest rate cuts by African central banks,” the report said.
It added that “in 2025 alone, policy rates were cut by an average of 0.98 percentage points,” and that including the first quarter of 2026, the average cut reached 1.33 percentage points.
The report further noted that “encouraged by a rapid decline in inflation, four countries (Sierra Leone, Egypt, the Democratic Republic of Congo, and Ghana) reduced policy rates by eight percentage points or more.”
Borrowing costs stay elevated even as rates ease
Despite the scale of policy easing, Ghana’s cost of borrowing remains high, suggesting that reductions in the headline policy rate have not translated fully into cheaper credit for businesses and households.
The Bank of Ghana’s May 2026 Summary of Economic and Financial Data showed the average lending rate stood at 16.33% in April 2026. The figure had declined from 20.58% in January, easing to 19.17% in February and 17.74% in March, pointing to a gradual repricing of credit.
The Ghana Reference Rate has also fallen sharply to 10.06% in April 2026 from 15.68% in January, indicating improving funding conditions, even though lending rates remain comparatively sticky.In May 2026, the Bank of Ghana held the policy rate at 14.0%, citing risks to inflation and growth.
The Monetary Policy Committee said it would keep monitoring data, including “potential spillover of the geopolitical tensions to the domestic economy,” and take action when necessary.
The committee also amended the dynamic Cash Reserve Ratio to a uniform 20% ratio in domestic currency, effective June 4, 2026, reinforcing its focus on managing liquidity while keeping disinflation gains intact.
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