Average base rate for February drops marginally to 24.5% - BoG
The Bank of Ghana on Friday released its latest data on Annual Percentage Rates (APR) of interest charged on loans and credit advances and the Average Interest (AI) paid on deposits by banks.
The data reveals that the industry average base rate as at February 28, 2018, was 24.5 percent, representing a drop of 1.1 percent when compared to the average rate at end-January 2018.
A statement from the Bank said on a year-on-year basis, the end-February 2018 figure represents a drop of 2.4 percent, when compared to the same period last year.
The average base rate at the end of December 2017 was 25.7 percent.
On the deposit front, the average deposit rate at the end of February 2018 was 10.1 percent, representing a drop of 0.3 percent, compared to the rate recorded for end-January 2018.
Compared to the end-February 2017 rate of 11.6 percent, the end-February 2018 figure represents a drop of 1.5 percent.
The average deposit rate was 10.4 percent at the end of December 2017.
In all, the list covers 31 banks.
The APR is the true interest rate banks and non-bank financial institutions charge the public on loans and advances.
It reflects the true cost of borrowing and includes; charges and commissions levied by banks.
The average interest paid on deposits is the average interest paid by banks on deposits over the period.
Base rate reflects the minimum interest rate that can be charged on loans and credit advances.
The publication of these rates is to promote transparency in the pricing and provision of banking services.
Bank of Ghana aims at promoting accountability of its decision making and build an understanding of the monetary policy formulation process among stakeholders through the publication of these documents.