Oct 2005 Financial News

Lending rates up

Oct 04, 2005

COMMERCIAL banks have increased their prime lending rates from 9.25 per cent to 9.5 per cent on local currency and from 7.5 to eight per cent on US currency.

This increase, which took effect October 1 comes on the heels of an increase in the 'repo rate' recently announced by the Central Bank.

The Central Bank of Trinidad and Tobago increased the 'repo' rate by 25 basis points from 5.50 per cent to 5.75 per cent with effect from September 23 this year.

The Bank stated in a release that the decision to hike the repo rate was taken "against the background of relatively high liquidity in the domestic economy, further narrowing in the differential between TT and US short term interest rates and signs of persistent inflationary pressures."

The Bank stated that liquidity conditions have remained relatively high in the domestic financial system and to absorb this liquidity, it continued to increase its open market operations.

It also said that it will continue to monitor developments in the external and domestic markets and will keep monetary conditions under close review. The next 'repo' rate announcement is scheduled for October 21 this year.


The Trinidad Express
Tuesday, 4th October, 2005
http://www.trinidadexpress.com/index.pl/article_business?id=106043384