Industry, Investment and Commerce Minister Aubyn Hill, is urging banks to lower their interest rates on loans.
He notes that while the Bank of Jamaica (BOJ) policy rate has been reduced about four times between August and December 2024, “[the] banks have not followed yet”.
“We want our banks to be profitable. When you have a growing economy, banks benefit most [as] there are more transactions being done. [But] in order to have a growing economy, you must have reasonable and reasonably-low interest rates. When the Central Bank has been cutting its lending rate, we need to see the banks move in that direction,” he said on Monday.
Last week, the BOJ announced that it will keep its benchmark rate unchanged at 6.0 per cent for the month amid global uncertainty. The policy rate is the benchmark interest rate set by the BOJ that influences the cost of borrowing in the Jamaican economy.
Minister Hill was speaking during Monday’s signing ceremony for a Memorandum of Understanding between the Caribbean Export Development Agency (CEDA) and the state’s Development Bank of Jamaica (DBJ) for the launch of a corporate venturing programme.
The signing was hosted at the offices of the Inter-American Development Bank (IDB) in Kingston.
The partnership between the CEDA and DBJ will facilitate the introduction of a grant-funding initiative aimed at driving corporate venturing and entrepreneurial innovation.
The initiative will provide financing for local tech entrepreneurs and innovators who have secured a partnership with corporate entities to solve challenges.
The DBJ will provide grant funding to the tech entrepreneurs and innovators of up to US$75,000, upon establishment of a partnership.
– JIS News contributed to this report.
Follow The Gleaner on X, formerly Twitter, and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com.
Read More: Industry minister urges commercial banks to lower interest rates | News
