The Small Business Association of Jamaica (SBAJ) is calling on the Government to intervene to ensure banks comply with the Bank of Jamaica (BOJ’s) policy changes.

Last week, the BOJ’s Monetary Policy Committee unanimously agreed to reduce the policy rate by 25 basis points to 6.00 per cent per annum, effective yesterday.

This is after it assessed that the prevailing economic environment is conducive to a further easing of its monetary policy stance.

The BOJ also noted that interest rates on bank loans and other credit terms at financial institutions across the country remain high and restrictive.

It said banks may have room to make downward adjustments in their rates.

However, the SBAJ said commercial banks have not adjusted their lending rates accordingly, leaving borrowers struggling under high-interest auto loans, mortgages, credit cards, and personal loans.

It said this has resulted in outrage from small business leaders.

The Association is calling for immediate action to address the financial strain on its members.

Noting that the matter must be addressed urgently, SBAJ President Garnett Reid said the Government should intervene.