The International Monetary Fund (IMF) has expressed concern that, despite consecutive reductions in Bank of Jamaica policy rates in April and August, and the narrowing of the interest rate corridor, local banks have not made any significant change to their lending rates.
The concern coincides with the IMF pointing out that there has been a slight decline, in real terms, in the amount of money loaned to the private sector. It also pointed out that despite lower policy rates, the difference between what banks give their customers on deposit and how much they charges for loans remains high.
Figures released by the Bank of Jamaica last week show loan growth in the quarter to the end of June was up 5.9%, compared to 8.9% a year ago.
comments powered by Disqus