PanCaribbeanBank yesterday announced plans to lower its prime lending rates by 50 basis points (bps) effective September 1, 2010.

The decision, the bank said in a press statement, “follows the recent trend of lower domestic interest rates, led by rate cuts at the Bank of Jamaica”.

“The new Prime Lending Rate will fall from 17.95 per cent to 17.45 per cent, down by 0.50 (percentage points),” said the statement. “With this reduction, PanCaribbeanBank will offer the lowest Prime Lending Rate in the Jamaican Commercial Banking Market.”

Philip Armstrong, managing director of PanCaribbeanBank noted: “This move reflects the current downward trajectory of interest rates, which should shift investment toward the real sectors and ultimately, result in economic expansion.”

PanCaribbean sees itself playing an important role in supporting the positive trends that have developed over the last six months — currency stability, lower inflation, fiscal consolidation, improved balance of payments and upgrades by the international rating agencies.

“Our Board senses that while businesses remain concerned about the economy, at some point they will begin to invest in projects again, and lower interest rates will help them make those investment decisions with greater confidence.”

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

PanCaribbean is a financial services group which provides commercial and investment banking products, along with wealth and asset management services to its corporate, institutional and individual clients.