Jul 2009 Financial News

Scotia follows BOJ, cuts interest rates

Jul 27, 2009

Following the decision by the Bank of Jamaica to cut its interest rate, Scotiabank followed suit with a percentage point reduction in its base lending rate from 21.5 per cent to 20.5 per cent on Friday.

The new rate becomes effective Monday, August 3.

"The reduction in our lending rate at this time reflects our commitment to stimulating recovery in all sectors of the economy, at a very challenging time for retail, commercial and corporate borrowers," said Scotiabank group president and chief executive officer Bruce Bowen.

"At times like these it is critical that senior decision makers in Government, business and civil society show leadership by working together to build confidence in the business community and general public. As the leading financial institution in Jamaica, this reduction in our lending rate is evidence of our confidence in Jamaica and our commitment to support all of our customers through this challenging period."

Earlier Friday, the BOJ announced that it had cut the interest rates applicable to open market instruments by 100 basis points following positive trends in key monetary indicators.

The central bank reported that 12-month inflation fell to nine per cent at the end of June, from 12.4 per cent at the end of the fiscal year 2008/09. The foreign exchange market has also stabilised while the BOJ reported the prospects for further stability had been boosted by the Government's decision to secure a stand-by arrangement with the International Monetary Fund (IMF).

Source: Jamaica Observer
http://www.jamaicaobserver.com/magazines/Business/html/20090725T210000-0500_156127_OBS_SCOTIA_FOLLOWS_BOJ__CUTS_INTEREST_RATES.asp
Published:Sunday, July 26, 2009