RBTT Bank Jamaica Limited has announced a further reduction in its prime lending rate, which will cut the cost of borrowing by an additional 50 basis points.

This brings to 150 basis points the net reduction in its lending rate over the two-month period, September to November. On September 1, RBTT reduced lending rates by 100 basis points.

As at November 1, RBTT's prime rate will therefore stand at 20.5 per cent, down from 22 per cent at the end of August.

Commenting on the reduction, Minna Israel, president and country head, said: "This is in direct response to the reduction in interest rate by the Bank of Jamaica which has lowered rates five times since the start of this year.

"The bank recognises that we are currently operating in challenging economic times and our customers are directly affected. This move signals our continued efforts to assist customers to withstand the ensuing pressures," she added.

Israel said that lower cost of credit should provide affected householders with more expendable income, and should help to stimulate investment and business retooling.