Slight hike in cost to do business
THE COST OF DOING business will increase slightly for a few large corporations in Barbados that borrow money either directly from United States-based banks, or American dollars from local banks.
That’s the immediate fallout from the Federal Reserve’s – the United States central bank – decision to raise interest rates there after seven years. The rates were raised 0.25 per cent on December 16 from almost zero. Any increased costs these companies encounter will be aligned to the shift in those interest rates.
However, there will be no significant impact on the Barbados economy as a result of the Fed’s decision, given the small size of the increase. (SP)
Please read the full story in today’s Sunday Sun, or in the eNATION edition.