General
Press Releases
Press
Release March
3, 2006
Bank Announces a Change in the
Discount Rate
The Central
Bank of Barbados wishes to advise all commercial banks of a
change in the discount rate.
With
effect from March 15, 2006, the discount rate payable by
commercial banks on temporary advances from the Central Bank
will be increased from 10% to 12%.
The
increase in the discount rate is intended to discourage
commercial banks from borrowing from the Central Bank and to
encourage greater reliance on the interbank market.
This
increase is necessary since lending rates have increased to the
extent where lending rates at the upper end of the spectrum are
in excess of the current discount rate.
March
3, 2006
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