Business Minister Urges Commercial Banks to Reduce Lending Rates
At a January 29, 2025, Post Cabinet Press Briefing, former banker, Senator the Honourable Aubyn Hill, Minister of Industry, Investment, and Commerce, has called upon Jamaica’s commercial banks to lower their lending interest rates in alignment with recent monetary policy adjustments by the Bank of Jamaica (BOJ). This appeal aims to stimulate economic growth by making credit more accessible to businesses and consumers.
BOJ has consistently reduced its policy interest rate, signalling a shift towards a more accommodative monetary policy stance. Despite this, many commercial banks have yet to adjust their lending rates accordingly.
At the press briefing, Minister Hill emphasized the importance of passing on the benefits of lower policy rates to the wider economy, stating: “Our financial institutions should be acting in concert with the BOJ’s policy direction. Now is the time to reduce rates. Reducing lending rates will empower our businesses, particularly small and medium-sized enterprises, to invest, expand, and contribute to national development.”
Minister Hill’s call aligns with recent appeals from members of the public and the private sector urging banks to respond to the BOJ’s rate cuts.