Private sector groups call for banks to respond to BOJ rate cuts
The leaders of the Private Sector Organisation of Jamaica (PSOJ), Jamaica Manufacturers and Exporters Association (JMEA) and the Jamaica Chamber of Commerce (JCC) are calling for commercial banks to respond to the cut in interest rates, recently announced by the Bank of Jamaica.
In a joint release, the business leaders said there is an urgent need for commercial banks to reduce their lending rates in order to stimulate economic activity.
The Jamaican economy climbed by 1.40% during the first quarter of this year, flatlined during the second quarter, and declined by 2.80% during the third quarter.
The Planning Institute of Jamaica is also projecting a further decline of 0-1.5% during the fourth quarter which ends next week.
The BOJ on Friday announced a further rate cut of 25 basis points to 6% per annum from 6.25% per annum.