Ghana continues to rank among Africa’s countries with the highest borrowing costs, despite a significant reduction in its monetary policy rate over the past year, according to the African Development Bank’s (AfDB) 2026 African Economic Outlook.
The report places Ghana’s policy rate at 14.0%, ranking it jointly 8th highest on the continent alongside The Gambia. The ranking covers 44 African economies.
Countries with the highest policy rates include Zimbabwe (30.0%), Nigeria (26.5%), Malawi (24.0%), Egypt (19.0%), Angola (17.0%), Sierra Leone (16.75%) and Liberia (16.25%).
In contrast, Francophone West African countries using the CFA franc recorded the lowest policy rates in Africa.
Sharp Monetary Easing in Ghana
Despite its relatively high position, Ghana recorded the most significant policy rate reduction in 2025. The Bank of Ghana cut the Monetary Policy Rate from 28.0% in early 2025 to 14.0% by May 2026, reflecting easing inflationary pressures and improving macroeconomic conditions.
AfDB noted that across Africa, central banks generally reduced rates amid declining inflation, with average policy cuts of 0.98 percentage points in 2025, rising to 1.33 percentage points when including early 2026 data.
It further highlighted that four countries—including Ghana, Sierra Leone, Egypt, and the Democratic Republic of Congo—reduced policy rates by eight percentage points or more during the period.
Borrowing Costs Still Elevated
However, the cost of credit in Ghana remains high in real market terms. Bank of Ghana data shows that average lending rates stood at 16.33% in April 2026, after easing from 20.58% in January to 17.74% in March.
The Ghana Reference Rate also declined significantly, falling from 15.68% in January 2026 to 10.06% in April.
Central Bank Maintains Caution
Although the policy rate has been reduced, the Bank of Ghana maintained it at 14.0% in May 2026, citing persistent risks to inflation and economic growth.
The Monetary Policy Committee noted potential external shocks, including geopolitical tensions, and said it would continue to monitor developments closely before making further adjustments.
The Committee also announced changes to the Cash Reserve Ratio, setting a uniform 20% requirement in local currency effective June 4, 2026, as part of ongoing monetary policy reforms.
