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Central Bank Urged To Lower Interest Rate
Real estate news By Tameka Lundy
30th January
The Central Bank of The Bahamas might have to consider the option of reducing the prime lending rate of 5.50 percent as a means of keeping the Bahamian economy, if the global economic situation continues to deteriorate in the midst of what some have referred to as an ominous economic outlook for 2008. The recommendation came from Raymond Winder, a leading Bahamian accountant who is also managing partner of Deloitte and Touche.
Following strong growth through the third quarter of 2007, the global economic expansion has begun to moderate in response to continuing financial turbulence, the International Monetary Fund warned yesterday in its new World Economic Outlook update. Global growth is projected to decelerate from 4.9 percent in 2007 to 4.1 percent in 2008 and downside risks remain. Mr. Winder proposed a reduction in the prime rate as a critical move to stimulate and encourage economic activity in The Bahamas. “The Central Bank may have to, depending on how bad things get, reduce the interest rate to ensure that individuals will continue to build houses and businesses and borrow money because then the rates would be a little bit lower,” he said.
Calls to Central Bank Governor Wendy Craigg for a response to the suggestion were not returned up to press time. In her last comments on the economy featured earlier this month at the Bahamas Business Outlook seminar, Ms. Craigg offered a glimmer of hope in her economic outlook.
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