The Central Bank of Barbados today announced that effective April 21, 2015 it will no longer set the minimum savings rate on deposits.
It stated that going forward, each commercial bank and deposit-taking institution would be responsible for setting its own interest rate.
“The legal notice of this change appears in the Official Gazette of today’s date (April 7), and commercial banks are obliged to provide customers one month’s notice before they may alter the existing rate, ” a statement from the Central Bank said.
It said the decision to allow the market to determine the rate was reached after careful consideration of the performance of the domestic financial markets.
Barbados now joins at least two other Caribbean countries, Jamaica and Trinidad and Tobago, that have deregulated interest rates for savings accounts.