The company said the decision was made after its Risk Management Committee considered that the Bank of Jamaica recently adjusted downwards its 30-day benchmark rate; the domestic currency markets remain relatively stable; foreign currency reserves are at adequate levels and credit plays a vital role in supporting economic activity and growth.

Additionally, PanCaribbean noted that economic recovery, especially with the delay in finalising the revised measures equired to comply with the International Monetary Fund agreement, requires a plan that aids both fiscal consolidation and faster growth to improve Jamaica’s prospects.

“We note that the economy grew in the second quarter and believe that the banking sector must continue to assist the productive sectors as the engines that push Jamaica in the right direction,” said PanCaribbeanBank managing director Philip Armstrong in a press release.

PanCaribbeanBank is the commercial banking subsidiary of Pan Caribbean Financial Services.

The central bank two weeks ago reduced the interest rate payable on its key benchmark 30-day Certificates of Deposit by 25 basis points to 6.25 per cent, based on the fact that it expected full fiscal year inflation to be inside its target range of 6 per cent to 8 per cent.