The latest figures from the Bank of Ghana shows that banks’ base rates have dropped by 0.3 percent, bringing the year-to-date drop to 1.9 percent.

The monthly Annual Percentage Rates (APR) of interest charged on loans and credit advances and the Average Interest (AI) paid on deposits by banks show that the industry average base rate, as at October 31, was 25.7percent – a marginal decrease of 0.3 percent compared to 26 percent at the end of September.

At the start of the year (end-January), the industry average base rate was 27.6 percent, giving a year-to-date drop of 1.9 percent.

The average deposit rate as at October 31 was 10.4 percent, the same rate as at the end of September. At the start of the year (end-January), the average deposit rate was 11.9 percent; giving a year- to- date decrease of 1.5 percent.

The APR, according to the central bank, 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.

“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 advances. The publication of these rates is to promote transparency in the pricing and provision of banking services,” the statement added.