Finance Minister Urging Banks to Lower Lending Interest Rates

Finance Minister, Fayval Williams, is urging the country’s commercial banks to lower their lending interest rates in line with the Bank of Jamaica, BOJ’s recent reductions.

She says the compliance would represent a significant step in the thrust towards economic development.

The minister’s call follows complaints from the Medium Small and Micro Enterprises, MSME Alliance, that the persistent delays of banks to adjust their lending rates are placing unnecessary financial strain on its members.

The MSME argues that when the BOJ increases policy rates to combat inflation, banks swiftly adjusted their borrowing rates within a six-month period.

But it says despite the recent policy rate reduction, banks remain hesitant to follow similar protocols.

The MSME also criticised the BOJ after the central bank explained it’s unable to force institutions to comply with the reduction rate.

Minister Williams says she’s committed to providing the necessary support to small businesses.

Fayval Williams, Minister of Finance.