‘Lending Rates are Too High!’ – BOJ Governor

Bank of Jamaica Governor, Brian Wynter, says interest rates at lending institutions are still too high.

This, despite the fact that interest rates on bank loans have been falling. He says the rates fell by more than 2.5-percentage points over the year to March 2017.

This has brought average lending rates to businesses to around 7.5-percent.

However, the Central Bank Governor says this is still too high.

Mr. Wynter says with two new banks now providing greater competition in the market, he expects to see lending rates come down further.

He says the BOJ has also received anecdotal information that the new credit bureaus are already improving borrowers’ credit behaviour.

These factors have led to an increase in both business and personal loans.

The Governor was speaking at the BOJ’s quarterly press briefing this morning.