Policy rate hits 27%; loans to become more expensive

The Bank of Ghana has increased its policy rate by 2.5 percentage points to 27%.

This means cost of borrowing is expected to go up further, but will depend on the risk profile of the customer. Customers who are credit worthy may enjoy a slightly better rate than first time borrowers or customers are who are considered somehow risky.

Already, average lending rate is 31.40%.

However, the average lending rate varies among the banks and the respective sectors that they lend to.

Some banks will offer loans equivalent to the Ghana Reference Rate of 27.44%, whilst others will charge rates as high as 40%.

More soon……………..

Source: Ghana News