RBTT Bank Jamaica Limited on Friday announced a reduction in its prime lending rate, which will cut the cost of borrowing by 130 basis points. As of January 1, 2011 the Bank’s prime lending rate will move from 18.25 per cent down to 16.95 per cent.

According to RBTT Jamaica president and country head Minna Israel: “This reduction marks the second time within the last five months that we will be reducing lending rates, as a direct response to the rate reduction instituted by the Bank of Jamaica and the general falling interest rate environment. In addition, we recognise that we play a critical role in helping to stimulate the growth of our economy by providing affordable solutions to our clients during these challenging economic times.”

In August, RBTT Jamaica reduced its lending rates by 225 basis points, from 20.5 per cent to 18.25 per cent.

Scotiabank earlier this month reduced its base lending rate by 100 basis points to 16.75 per cent.