Jul 2009 Financial News

Banks reduce lending rates

Jul 07, 2009

Last Wednesday, Republic Bank dropped its prime lending rate 125 basis points to 11 per cent following a reduction by the Central Bank in its Repo or overnight lending rate from eight per cent to 7.5 per cent.

Since then other banks have cut their lending rates.

RBTT Bank reduced its prime lending rate from 12.5 per cent to 12 per cent and State bank First Citizens has also cut its prime lending rate to 11.75 per cent.

The latest reduction in the prime lending rate follows cuts in credit card interest rates as well as car and loans and mortgages for homes.

The Trinidad and Tobago Chamber of Commerce commended Republic Bank on leading the banking sector in the reduction of the prime lending rates.

The Chamber said in a statement it hoped that the reduction in the lending rates was the first step in a holistic approach toward lowering interest rates generally.

"The decrease in the banks prime lending rate comes amidst a slowing in domestic economic activity, and is certainly a step in the right direction to stimulate the investment and assist the business community to compete more effectively on the global marketplace," the Chamber said.

Source: Trinidad Express
http://www.trinidadexpress.com/index.pl/article_business?id=161501234
07-07-09