Lowering Interest Rates Key to Growing Economy – PM

Prime Minister the Hon. Bruce Golding, has said that the lowering of interest rates is key to spurring investment and growing the economy.
Mr. Golding, speaking on his monthly radio call-in programme ‘Jamaica House Live’ earlier this week, said that high interest rates on loans was a turnoff for potential investors, who often opt for low risk Government paper.
This, he said, was an impediment to growth as the country could only grow in a climate where investments were taking place, which would boost job creation.
“The country can only grow through investments. It is through investments that we can create jobs and we can produce things, we can export them and earn foreign exchange and business can go on,” he stated.
Admitting that Government borrowing was contributing to the problem, the Prime Minister stated that one sure way to reduce interest cost was to “back-off the Government from so much borrowing.”
“If you do that then the interest rates go down because when money has to run down investment, money not going to ask for 17 per cent and 20 per cent. If money gets a four per cent or five per cent money will be happy,” Mr. Golding stated.