Ghana has been ranked as the African country with the highest lending rate despite recording significant reductions in its policy rate over the past year, according to the latest African Economic Outlook 2026 report by the African Development Bank.
The report ranked Ghana first among 44 African countries with a policy rate of 14.0 percent, followed by the Democratic Republic of the Congo and Egypt in second and third positions respectively.
According to the AfDB, monetary policy decisions across the continent in 2025 were largely influenced by easing inflationary pressures, prompting many central banks to reduce interest rates. The report noted that policy rates were cut by an average of 0.98 percentage points in 2025 alone. Including the first quarter of 2026, the average policy rate cut amounts to 1.33 percentage points.
The AfDB said Ghana was among four countries, alongside Sierra Leone, Egypt and the Democratic Republic of Congo, that reduced policy rates by eight percentage points or more, supported by a rapid decline in inflation.
Despite the sharp reduction in the policy rate, lending rates in Ghana remain relatively high. Data from the Bank of Ghana showed that the average lending rate stood at 16.33 percent in April 2026. This represented a decline from 20.58 percent in January 2026, 19.17 percent in February 2026 and 17.74 percent in March 2026.
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The Ghana Reference Rate also declined significantly, falling from 15.68 percent in January 2026 to 10.06 percent in April 2026.
Between January 2025 and May 2026, the Bank of Ghana reduced the Monetary Policy Rate from 28.0 percent to 14.0 percent, reflecting easing inflationary pressures and improving macroeconomic conditions. However, at its May 2026 meeting, the central bank maintained the policy rate at 14.0 percent, citing risks to the inflation and growth outlook.
The Monetary Policy Committee said it would continue to monitor incoming economic data, particularly the potential impact of geopolitical tensions on the domestic economy, and take appropriate policy measures when necessary. The committee also announced a revision of the dynamic Cash Reserve Ratio, setting a uniform reserve requirement of 20 percent to be maintained in domestic currency, effective June 4, 2026.
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