This research examines the impact of Bank of Ghana policy rate on commercial bank lending and their financial performance. It assesses the degree of responsiveness of the Commercial Bank Lending to changes in the central bank policy rate and the overall impact of the policy rate on the financial performance variables of the banks. The study first observes the Central bank of Ghana’s policy rate movement over the past five (5) years. It focuses on licensed banks in Ghana as the population and obtained a sample size of 10 banks using a stratified sampling technique. Quantitative research approach was used to assess the relationship and multiple regression techniques were employed for the quantitative analyses. The results of the finding was significant positive relationship between monetary policy rate on banks’ lending implying that an increase in policy rate generally leads to an increase in commercial bank lending rate.