Ghana’s Lending Rates Drop to 15.94% as Treasury Bill Rates Continue Decline
Ghana’s average commercial bank lending rate has declined to 15.94 per cent in October 2026 from 22.2 per cent in October 2025, while Treasury bill rates have also recorded significant reductions, reflecting improving economic stability and easing borrowing costs for businesses and households.
Presenting the 2027 Budget Statement to Parliament, the Finance Minister said the monetary policy rate had fallen by 2,971 basis points, from 29.72 per cent in January 2025 to 10.01 per cent by October 2026.
He said credit to the private sector also grew by 35.5 per cent between August 2025 and August 2026, indicating increased access to credit.
The Finance Minister further disclosed that between December 2025 and the first quarter of November 2026, the 91-day Treasury bill rate declined by 653 basis points, from 11.019 per cent to 4.56 per cent.
Similarly, the 182-day Treasury bill rate fell by 632 basis points, from 12.52 per cent to 6.2 per cent, while the 364-day rate declined by 346 basis points, from 12.94 per cent to 9.48 per cent.
According to him, the decline in interest rates is helping households and businesses benefit from the gains of economic stability through cheaper credit.
Fiscal Performance
On fiscal performance, the Finance Minister said government had sustained fiscal discipline while directing more resources towards capital investment.
He disclosed that provisional data for January to October 2026 showed a primary surplus of 1.4 per cent of GDP on a commitment basis, putting government on course to achieve its full-year target of 1.5 per cent.
On a cash basis, the primary surplus stood at 0.1 per cent of GDP, outperforming the programme deficit target of 1.3 per cent.
The overall fiscal balance recorded a deficit of 1 per cent of GDP on a commitment basis, better than the target of 3 per cent, while the cash basis deficit stood at 2.3 per cent against a target of 4.5 per cent.
The Minister attributed the performance to stronger revenue mobilisation and firm expenditure controls.
Revenue Performance
Total revenue and grants for the first ten months of 2026 reached GH¢219.3 billion, representing 13.7 per cent of GDP and exceeding the target of GH¢211.8 billion by 3.5 per cent.
Domestic revenue amounted to GH¢218.2 billion, surpassing the target of GH¢209.6 billion by 4.9 per cent.
He said the revenue gains were achieved without the introduction of new taxes or increases in existing tax rates.
Government Expenditure
On expenditure, provisional figures for January to October 2026 showed that total expenditure on a commitment basis amounted to GH¢239 billion, representing 15 per cent of GDP and coming 7.6 per cent below the target.
Primary expenditure, which excludes interest payments, amounted to GH¢201 billion.
