Central Bank of Barbados Lowers the Discount Rate
The Central Bank of Barbados today announced a change in the discount rate.
With effect from April 20, 2009, the discount rate payable by banks on temporary advances from the Central Bank will be reduced from 10% to 8% per annum.
The reduction in the discount rate is intended to help to lower the cost of borrowing of customers. The discount rate was last reduced effective December 29, 2008.
Starting in November 2007, the Bank has sought to lower the operating cost of businesses and individuals through interest rate reduction. It is expected that the lower discount rate will have a moderating effect on loan rates.