interest rate

Banks’ interest rates drop marginally-BoG report

Interest rates of banks have seen marginal declines between April and May 2017.

An assessment of the average interests charged by the commercial banks on loans and advances shows that the banks have generally reduced their interest rates.

The interest rates on loans and advances have declined between 0.3 and 1.8 percent.

According to the Bank of Ghana’s latest Average Interest (AI) and Annual Percentage Rate (APR) report, the average base rate which is the lowest rate a bank can lend to its customers, dropped by 0.7 percent, from 26.8 to 26.6 percent between April and May 2017.

Also, average interest rates on vehicle, manufacturing and construction loans dropped between 0.5 and 2 percent between April and May 2017.

Customers will now have to pay interest rates ranging between 33 and 33.9 percent.

Meanwhile the average interest rate charged on loans and advances for agricultural purposes increased by 0.3 percent to 32.7 percent in May.

Also, loans and advances for commerce will attract an average industry rate of 33.4 percent up by over 2 percent between April and May this year.

Interestingly, interests on deposits by commercial banks have dropped by almost 1 percent as at May this year.

The figure dropped from 11.3 to 11.2 percent.

However, mortgage loans did not record any change and they could be offered to customers at an industry average rate of 33.2 percent.