Dec 2005 Financial News

Lending Rate Goes Up

Dec 09, 2005

The commercial lending rate at banks has moved up by 25 basis points from 9.50 to 9.75 - a direct consequence of the Repo Rate increasing to 6.0 two weeks ago.

Scotiabank brought the new 9.75 rate into effect on Monday and RBTT instituted the change on Thursday.

President of the Bankers Association Larry Howai told the Daily Express yesterday that First Citizens Bank will make the change next week, as the bank is getting a notice out to its clients.

Central Bank Governor Ewart Williams commented that the prime liending rate moves in step with the Repo Rate.

"Clearly the intention is to tighten monetary policy and for that reason the rate was increased - the next step is to take some special measures to tighten liquidity", Williams said yesterday.

The Trinidad Express
Wednesday, 8th December, 2005.