The Bank of Jamaica (BOJ) signals Lower Rates

    JN Fund Managers
    JN Fund Managers

    The Governor of Bank of Jamaica (BOJ), Brian Wynter, has indicated that there is more room in which to pursue an accommodative monetary policy and noted that further actions may be needed in order drive private sector expansion at a pace that will generate growth and jobs. According to the governor, inflation, the BOJ’s primary macroeconomic target variable, trended lower between April and June 2018. This was largely due to a sharper than expected reduction in agricultural prices and lower than anticipated imported inflation. The Central Bank is forecasting that the inflation rate will remain close to 3.5% in the latter 2 quarters of 2018 and rise to their 5% target by June 2019. This is predicated on an expected increase in agricultural prices, oil prices remaining higher, and on the country’s Gross Domestic Product (GDP) improving; driven in part by lower interest rates.

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