Most discussion on interest spreads in Jamaica is based on the difference between the average loan rate and the average rate on time deposits as published by BOJ. For many years, the rate payable on savings deposits was controlled and was adjusted periodically to ensure a real interest return for small savers. Rates on time deposits varied according to market conditions and hence represented a more accurate measure of commercial bank pricing policy. For this reason, the spread published by BOJ over a long period has been the difference between the average loan rate and the.
