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General
Press Releases
Press
Release October
13, 2005CENTRAL
BANK ANNOUNCES ANOTHER INTEREST RATE HIKE
The
Central Bank of Barbados today announced another modification in
its monetary policy.
With
effect from November 1, 2005, the minimum rate of interest
payable on deposits will be increased from 4.25% to 4.75% per
annum.
The
most recent statistics available to the Bank indicate that,
despite earlier increases in deposits and loan rates, the high
demand for credit from commercial banks shows little sign of
abating. These
loans continue to fuel strong import growth and a reduction in
foreign exchange reserves.
Moreover, the seasonal pick-up in import growth is now
beginning, with the approach of Independence and Christmas.
The
Bank’s persistence with a tight monetary policy stance is a
signal that the prevailing external imbalance must be brought to
a level which is consistent with Barbados’ objective of
ensuring macroeconomic stability.
October 13, 2005
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