The apology from the British Prime Minister Theresa May must now be converted into legislative action to protect the “Windrush” generation of Caribbean peoples from being deported from Britain.
You are here
Is the era of cheap money coming to an end?
In February 2009—as the global financial crisis began to impact T&T and around the time of the collapse of the CL Financial empire—the Central Bank’s repo rate stood at 8.75 per cent.
The repo rate—the Central Bank’s key monetary tool and the amount of money the institution charges for providing overnight credit to banks that are unable to meet their liquidity requirements—was reduced to 8.5 per cent in March 2009 “in order to provide the signal for the lowering of bank lending rates, especially to businesses.”
A little over five years later, the repo rate is at 2.75 per cent where it has stayed since it was reduced by 25 basis points in September 2012.
In February 2009, the prime lending rate offered by commercial banks to their best customers was 13 per cent. Today, the quoted prime lending rate is 7.5 per cent, but for some time now the high levels of liquidity have allowed some customers to negotiate rates below prime.
As recently as December 2008, T&T’s 90-day Treasury Bill rate was an amazing 7.05 per cent and when the rate declined to 4.37 per cent in February 2009, it’s interesting that the Central Bank then spoke about the “sharp narrowing in the differential between US and TT short-term interest rates. This differential fell to 404 basis points (4.04 per cent) in February 2009 from 700 basis points (seven per cent) in December 2008.”
User comments posted on this website are the sole views and opinions of the comment writer and are not representative of Guardian Media Limited or its staff.
Guardian Media Limited accepts no liability and will not be held accountable for user comments.
Guardian Media Limited reserves the right to remove, to edit or to censor any comments.
Any content which is considered unsuitable, unlawful or offensive, includes personal details, advertises or promotes products, services or websites or repeats previous comments will be removed.
User profiles registered through fake social media accounts may be deleted without notice.