Bank of Jamaica (BOJ) has expressed hope that in the last quarter of this year, conditions will be favourable to allow commercial banks’ interest rates to reduce.

The issue of commercial banks refusing to lower their interest rates in line with the BOJ’s policy rate has been a major sore point for Jamaicans, with several calls for the Bank to intervene.

In January, BOJ Governor Richard Byles said the Central Bank was contemplating addressing the issue through legal means.

When asked about the issue this week, Mr. Byles explained that there has been some decline in the rates.

He noted that while he hopes for a further reduction, he is appreciative of the current downward trend.

He noted that commercial banks have indicated that they have issues to resolve before bringing down their rates.