Bank Announces a Change to Monetary Policy
The Central Bank of Barbados has announced a modification in its monetary policy.
Effective August 17, 2009, the minimum rate of interest payable on deposits will be reduced from 3.0% to 2.5% with a view to achieving a commensurate reduction in lending rates.
This change is in support of the Bank’s continuing efforts to alleviate the costs of borrowing for business enterprises. In so doing, this action will also reduce the risk of credit default which is particularly likely in cases where cash flows have weakened and will help businesses in a situation of lower earnings. Lower repayment costs on individual loans will also help to prevent increases in past-due debts.
The minimum deposit rate has now been reduced on three occasions by a total of 1.5 percentage points since October last year.
July 30, 2009