A SENIOR BANKER believes that the Central Bank is preparing to intervene in the market with millions of dollars in Government savings bonds which could entice depositors to switch from the low-interest rates in banks to higher-paying Government paper.
President and chief executive officer of Republic Bank Barbados Ian De Souza, told the DAILY NATION that this move was expected, given the Central Bank’s decision to release its control of the minimum interest rate on deposits.
The Central Bank had previously set the minimum rate to be paid on savings and deposits at 2.5 per cent but from April 21, banks will be allowed to offer customers whatever rate they wanted given the market conditions.
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