Bank of Jamaica (BOJ) Leaves Policy Rate Unchanged

    JN Fund Managers
    JN Fund Managers

    Effective yesterday, August 28, 2018, the Bank of Jamaica (BOJ) opted to hold its policy interest rate steady at 2.00%. The BOJ has indicated that its decision to maintain the policy rate reflects its expectation of inflation advancing towards the lower end of the target range of 4.00% to 6.00% by the March 2019 quarter and towards the middle of the range subsequently. The Central Bank’s viewpoint is grounded on (i) the anticipated increase in agricultural prices to normal levels, (ii) oil prices remaining high and (iii) Gross Domestic Product (GDP) rising in response to continued accommodative monetary policy initiatives effected by the Central Bank. Additionally, the Central Bank stated that if the acceleration in the private sector continues, this increased economic activity is likely to place upward pressure on inflation. If the ratio of private sector credit to productive enterprises does not increase over the short-term, the BOJ is likely to continue their accommodative monetary policy stance.

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