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In what could be a swift move, some banks in the country have began adjusting their base rates to conform with the reduction in the Bank of Ghana�s Policy Rate, the Prime Rate. The Prime Rate, the rate at which the Central Bank lends to commercial banks was adjusted downwards from 18 percent to 16 percent, a 200 basis point decline. Paa Kwesi Amissah Arthur, Governor of the Bank of Ghana, therefore urged the financial intermediaries to respond swiftly by reducing their lending rates accordingly since it would allow for a restoration of credit growth in the economy and ensure a steady growth in output. And so far, some banks have begun cutting their base lending rates in order to stay competitive and attract more customers. Banks� response means loosening the cost of credit which will directly impact on borrowing trends in the economy. Stanbic Bank Ghana, Agricultural Development Bank (ADB) and UBA Ghana have already made the new rates known to the public whilst others such as Access and Zenith banks are yet to make their changes known. Stanbic, ADB and UBA had adjusted their base rates downwards from 29,27 and 29 percent respectively to 26.75,24 and 27 percent respectively. Their new rates are expected to take effect from March 1, 2010. Standard Chartered Bank and uniBank Ghana Limited are expected to follow suit by reducing their base lending rates to 26.5 and 28.50 percent from 30 and 29.85 percent respectively whilst Barclays Bank Ghana is also expected to adjust its interest rate slightly down from the present 29.75 percent. Access Bank Ghana and Intercontinental Bank whose base rates are currently 29.75 and 27 percent respectively are also expected to review their base rates down soon. Others, such as HFC Bank, Fidelity, First Atlantic Merchant Bank and Prudential Bank, are in the process of reviewing their rates down. With the reduction in the banks� interest rates, banking lending rates are expected to drop to an average of about 32 percent. However, the huge gap in the borrowing and lending rates of banks is also a major issue for economists, analysts and market watchers. For instances, banks previously borrowed at 18 percent and then lent at 34 percent on the average. Similarly, the huge difference between the lending and deposit rates was also a worry as in Ghana, interests, on lending rates are five times higher than deposit rates. Meanwhile, the Central Bank would keep on tracking the Annual Percentage Rates (APR) and Average Interest (AI) of banks, and subsequently publish the best competitive lending rates for agriculture, manufacturing loans, personal among others. According to the Central Bank, the APR is the true interest rate banks and non-bank financial institutions charge the public on loans and advances, and thus it reflects the true cost of borrowings and charges and commissions levied by the banks.