15 Aug 2008

Samoa's Central Bank moves to drop loan interest rates to ease high cost of living

6:43 am on 15 August 2008

Samoa's Central Bank has eased its monetary policy stance by urging commercial banks and government loan institutions to reduce loan interest rates and increase lending for business development in order to bring down the cost of living.

The move is expected to apply for manufacturing, tourism, renewable energy, and agricultural sectors to help with the policy's objectives of reducing Samoa's demand for imported food items that have continued to increase in prices.

The Central Bank's Governor Leasi Papalii Tommy Scanlan, is predicting that the current interest rate of 12-point-7 per cent will be reduced to 12-percent.

Meanwhile the government is reportedly asking the Salary Tribunal to consider if another increase in public servant's salaries should be introduced in 2008 because of the continuing rise in oil prices and the cost of living.