BoG Annual Percent Rate Hits 25.7% in December

Bank of Ghana has 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 is based on figures available as at 31st December 2017.

A statement issued from the Secretary’s Department of the Central Bank yesterday, indicates that the industry average base rate as at December 31 was 25.7 per cent, same as that of November 30.

The average deposit rate as at December 31 was 10.4 percent, representing a marginal increase of 0.2 percent, compared with end-November figure of 10.2 percent.

Computed on a year-to-date basis, the end-December figure represents a decrease of 1.5 percent in 2017. At the start of the year (end-January 2017), the average deposit rate was 11.9 percent.

The statement contains the list of 31 Financial Institutions with their Annual Percentage Rates and Average Interests paid on deposits.

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.

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.

By: Emmanuel Yeboah Britwum/ thePublisher