RBTT cuts prime lending rates

Jamaica's third biggest bank, RBTT, said it will cut its prime lending rates, a move which brings them more in line with that of its bigger peers. 

Minna Israel, the President at RBTT, made the announcement on Thursday.  

“Effective August 1 we will be cutting our prime interest rates by 225 basis points, that’s 2.25%. We are moving down from 20.5% to 18.25%,” she said.

The RBTT President also said the rate reduction is in response to the reduction in interest rates, by the Bank of Jamaica. 

It follows last week’s announcement by the National Commercial Bank (NCB), that it will cut its prime lending rates by 3% to 17.25%.

The NCB rate cut will also take effect on August 1.

The Bank of Nova Scotia has prime lending rates at 17.25% as well, which means of the three largest banks, RBTT's prime rates are the highest in the nation. 

Prime rates are the rates from which other interest rates charged on loans are based, and are typically always the lowest on offer, in individual banks. 

Apart from the announcement in rate reductions, the bank said clients can access a new special loan aimed at stimulating activity in the productive sector.