Bahamas Central Bank Blasted For ‘Doing Nothing’

Retired banker Al Jarrett is coming down hard on the Central Bank, charging that it was the only regional regulator to sit idly through the recession with no attempt to ease the sufferings of the people.

He said the bank had the means to make things slightly easier for the business community — and by extension employment — through its monetary policy, and chose not to do so.

“This is the only central bank in the world that sat through the recession and did nothing,” he told Guardian Business yesterday. “In spite of the fact that external reserves and excess liquidity are [high] and Baha Mar is expected to inject millions and millions into the economy, they still don’t see fit to reduce the prime rate.

“They’ve allowed the business sector to be fully depressed, which created a greater level of unemployment. Now, the poor and middle class are losing their homes and their standard of living has gone down.”

The Central Bank has previously stated its concerns about making such a move, with fears of external reserves being depleted as Bahamians look to spend the money borrowed from banks outside of the country.