Ghana’s interest rates have fallen sharply, with yields on government securities hitting record lows, signalling a further reduction in lending rates by banks and potentially stimulating economic growth.
According to data from the Bank of Ghana, the yield on the 91-day bill dropped by 215 basis points to 6.45%, while the 182-day bill yield declined to 8.18% from 10.67%. The 364-day bill yield also eased by 86 basis points to 12.93%.
The government has benefited from the trend, with its cost of borrowing easing. The latest treasury bill auction was oversubscribed by 170%, with the Treasury accepting GH¢11.40 billion of the GH¢25.2 billion in bids tendered.
The 364-day bill was the most subscribed instrument, with GH¢9.37 billion in bids, representing 37% of the total. For the 91-day bill, GH¢8.605 billion in bids were tendered, with GH¢3.18 billion accepted. The 182-day bill saw GH¢7.21 billion in bids, with GH¢2.44 billion accepted.
The strong demand for treasury bills reflects investors’ confidence in Ghana’s economic prospects.
