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.