Reduction in the Discount Rate
The Central Bank wishes to advise the public of its decision to reduce the Discount Rate, by 75 basis points to 4.50 percent, effective immediately. The Bank would expect financial institutions to follow suit with a corresponding reduction in the Prime Rate, from 5.50 percent to 4.75 percent, and similar adjustments in their lending rate schedules.
The Bank considered carefully a number of factors in its decision to adjust monetary policy, including the signs of a more positive outlook for global growth and the implications for domestic economic activity.
CLICK HERE TO READ THE ANNOUNCEMENT: Reduction in the Discount Rate
That’s great news. A little late but still good. If they had done it sooner no telling how much people would have save their home. A savings of two to three hundred dollars goes a long way per month base on the amount of the actual loan.Progressive economies change rates regularly. In the Bahamas, we change it once every five years. The price of money is still too expensive. It is definitely a hindrance to growing our economy.
Great news shows that the Govt has managed the countries fiscal needs well. What does this have to do with Mr Jarret.
This is good for the public and the economy.
But when one reads the CB notice it is just amazing the reason given i.e. because the economy is on the rebound?? Who the hell wrote this garbage? CB is not expected to be apolitical but it clearly shows that HAI had a hand in this one as it complements his budget i.e. here is a gift vote for me!
Commercial banks are facing the largest ever outstanding loan balances, there are 40,000 persons out of work, the banks ain’t lending so what the hell is going on is CB that incompetent or that politicall influenced that it is merely trying to do something?
Well thanks again now lets see what the commercial banks are really going to do.
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