{"id":167775,"date":"2020-03-31T07:45:49","date_gmt":"2020-03-31T11:45:49","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=167775"},"modified":"2020-03-31T07:41:06","modified_gmt":"2020-03-31T11:41:06","slug":"barbados-cuts-lending-rate-500-bps-as-economy-to-shrink","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/03\/barbados-cuts-lending-rate-500-bps-as-economy-to-shrink\/","title":{"rendered":"Barbados cuts lending rate 500 bps as economy to shrink"},"content":{"rendered":"
March 31, 2020<\/div>
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By CentralBankNews.info<\/u><\/a>
\nThe central bank of the Caribbean island of Barbados cut its interest rates for providing overnight funds to banks by 500 basis points to 2.0 percent along with further monetary policy easing measures to “support the domestic banking sector in light of the projected impact of COVID-19 on the economy and the financial system.
\nThe Central Bank of Barbados also announced a moratorium on loan payments for firms and individuals impacted by the pandemic for up to six months and will provide additional credit to its customer to address short-term liquidity challenges.
\n“COVID-19 has had a crippling effect on the global economy,” the central bank said, noting the impact from a suspension of incoming flights to the island, the closure of hotels, attractions and restaurants.
\n“We expect economic activity to contract, bringing with it the potential for signifiant job losses,” Governor Cleviston Haynes said.
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“The Central Bank of Barbados today announced a series of measures to support the domestic banking sector in light of the projected impact of COVID-19 on the economy and the financial system.<\/div>\n
In outlining the changes, the Bank said that, while the financial system is very liquid, liquidity at individual institutions may fluctuate from time to time, particularly in strained conditions. The Bank noted that financial institutions have access to the interbank market and\/or negotiated credit line facilities.\u00a0\u00a0<\/span>These actions, therefore, are intended to further help Barbados\u2019 commercial banks and other deposit taking companies that it regulates navigate these trying circumstances.<\/div>\n
Effective April 1, 2020,<\/div>\n