Industry Minister Joins Call For Banks to Lower Lending Interest Rates

Industry Minister, Senator Aubyn Hill, has joined a growing chorus of voices calling for commercial banks to lower their interest rates to match reductions made by the Bank of Jamaica.

He’s the second cabinet minister to make such a call.

It follows similar calls from the private sector and the Bank of Jamaica, as frustration among stakeholders grows over the lack of follow-through by the nation’s financial institutions.

Chevon Campbell tells us more.

As the nation attempts to recover from months of difficulty caused by repeated weather-based economic shocks, calls from businesses, both small and large, grow louder regarding the continued high interest rates being imposed by banks.

It’s a sentiment shared by the Bank of Jamaica.

The Central Bank, which has repeatedly lowered the rates offered to deposit-taking institutions, has urged them to pass on these benefits to their own customers.

Despite the continued moral suasion, there’s been little action on the part of the banks.

The concern is now being expressed by Industry Minister, Senator Aubyn Hill.

His concerns echo those expressed by Finance Minister, Fayval Williams last week.

She noted that commercial banks lowering their lending rates would represent a significant step in the thrust towards economic development.

Minister Hill notes that outside of contractual agreements, there’s no reason for the banks not to reduce their rates.

Minister Hill says lowering the rates is in the best interest of all stakeholders.