Contrary to this expectation, the response of lending rates within the banking sector to the monetary easing by the Bank of Ghana has been sluggish. 26. The Annual Percentage Rates (APRs) which reveal actual lending rates in the financial sector indicates that the average base rate charged on borrowing by enterprises ranged between 27.5 percent and 38 percent at the end of August.
By all standards, these rates are high and have instigated tight credit conditions in the economy for most part of this year.