An interest rate is the “rate of interest charged for the use of money, usually expressed as an annual rate”. Interest, the money actually paid for that use, can be viewed as what is paid to attract deposits, or a charge for money loaned. All domestic financial institutions regulated by the Central Bank of Barbados (domestic licensees) are required to report on interest rates paid to customers for savings and time deposits attracted. Similarly, domestic licensees are also required to report on interest rates charged for various loans extended. With this information statistics are compiled on the minimum and maximum rates, as well as weighted average deposit and lending rates.
As one of its functions a central bank acts as bankers to the Government, banks and other deposit-taking entities that it licenses. The interest rate that a central bank charges to its licensees is called a bank rate. Additionally, sovereigns periodically issue Treasury Bills, Treasury Notes, Debentures and other securities as a means to finance government. Funds are paid to attract individuals and companies to purchase these instruments. By purchasing these instruments, individuals and companies lend to the countries. The funds paid to attract the purchase are expressed in percentage rates.
In addition to deposit and lending rates, the Central Bank of Barbados also shares information on the Treasury Bill and bank rates for Barbados, Guyana, Jamaica, Trinidad & Tobago, Canada, UK and the USA in the following tables:
- Selected Interest Rates (Table E1)
- Comparative Treasury Bill Rates and Bank Rates (Table E2)