Countries encouraged to cut interest rates to accelerate economic growth
Both the International Monetary Fund and its sister agency, the World Bank, which were created under the 1944 Bretton Woods Agreement, say the decision by Jerome Powell and his team at the Federal Reserve Board to slash the benchmark Federal Funds rate by 50 basis points to between 4.75% and 5% per annum presents an opportunity for countries such as Jamaica to cut their rates and accelerate economic growth.
But although the Bank of Jamaica recently also cut its rates by 50 basis points, none of the local commercial banks have responded by cutting their loan rates to their clients.
Instead they have raised all their fees, including miscellaneous charges.
Members of the Jamaica Manufacturers and Exporters Association and the Small Business Association of Jamaica have been calling for members of the Jamaica Bankers Association to lower their rates in order to facilitate more investments and growth, especially as the economy is projected to decline this fiscal year.
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