General
Press Releases
Press
Release March
1, 2002CENTRAL
BANK OF BARBADOS ISSUES NEW MONETARY POLICY
The
Central Bank of Barbados wishes to advise the public of a change
in its monetary policy. Effective
March 15, 2002, the Total Reserve Requirement for commercial
banks will be reduced from 24% to 23% of deposit liabilities,
with the Securities Requirement moving from 19% to 18% of
deposit liabilities. These requirements will be published in the
Official Gazette.
This
is the first reduction in the Securities Requirement since
September 2000 when it was also lowered by one percentage point.
It is a further signal to commercial banks to lower their
lending rates and also represents a continuation of the Bank's
policy of gradual financial liberalisation.
The
Bank further wishes to advise that the maximum weighted average
lending rate of 8.5% per annum will be published in the Official
Gazette, to take effect from March 15, 2002.
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