FirstCaribbean Jamaica cuts rates
Published:Sunday | November 21, 2010 | 12:00 AM
FirstCaribbean International Bank Jamaica has cut its base lending rate by 1.4 per cent to 16.85 per cent. The new rate takes effect December 1.
Managing Director Nigel Holness said the adjustment is the result of continuous improvements in a number of key economic indicators, and increased confidence in the Jamaican economy.
Its decision, however, follows the amplification and public declarations of central bank Governor Brian Wynter that the commercial banks, by moving so slowly to adjust the cost of funds, could counter his monetary-policy goals.
Wynter first made those comments November 10, and a day later, Scotiabank, the No. 2 bank by assets, cut its base rate to 16.75 per cent, also effective December 1. The central bank governor reiterated his position at a Jamaica Employers' Federation forum on Tuesday, November 16, and two days later, FirstCaribbean, Jamaica's No. 4 bank of seven, announced that its rate would be cut from 18.25 per cent.
Lowest rate since 1996
"This is the bank's lowest lending rate since 1996 and is the latest in a steady series of reductions," FirstCaribbean said.
The Scotiabank Jamaica group has the lowest prime rate and jockeys, with National Commercial Bank for the top slot in the loans market. Each had portfolios of more than J$80 billion at June 2010, according to central bank industry data.