Friday 3 July, 2020

BOJ reduces policy interest rate

The Bank of Jamaica has announced that effective November 23 November 2017, the rate offered on overnight placements with the Bank, the policy interest rate, will be reduced to 3.25 per cent from 3.50 per cent.

The adjustment to the policy rate reflects the Bank’s assessment that the inflation outlook for FY2017/18 and FY2018/19 will remain within its medium term inflation target of 4.0 per cent to 6.0 per cent.

The recent appreciation of the exchange rate has attenuated the upside risks to the inflation forecast. This outlook is also reinforced by the Government’s commitment to meeting the medium term fiscal targets outlined in the Fiscal Policy Paper.

Jamaica’s key macroeconomic indicators continue to reflect generally positive trends and macroeconomic stability is entrenched.

Inflation expectations remain firmly in single digits, international reserves are growing, the current account of the balance of payments is projected to remain at sustainable levels, market interest rates continue to trend downwards and the fiscal accounts remain strong. This easing in monetary policy will support continued credit expansion and economic growth.

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