JIS News

The Bank of Jamaica (BOJ) has announced that effective Thursday (September 17), the rates offered on its Certificates of Deposit have been reduced by 100 basis points.
The six-month benchmark rate will, therefore, move from 18 per cent per annum to 17 per cent. The full schedule of BOJ rates is set out below.
Tenor30-days60-days90-days120-days180-daysNew rates 12.50% 13.00% 15.50% 15.70% 17.00%Previous rates13.5014.0016.50%16.70%18.00%
The adjustment to policy rates follows the better than expected inflation outturn for August, which showed a further drop in the 12 month point-to-point inflation to 6.1 per cent from the 7.0 per cent reported for July.
“The stability of the exchange rate, the improvement in domestic agricultural supplies and the moderate growth in domestic money supply, all point to the likelihood of single-digit inflation for this fiscal year,” a release from the BOJ said.
“The improved prospects for inflation and macroeconomic stability are also being reflected in market rates, with the downward trend in Treasury Bill yields and other short term rates,” it noted.
The BOJ stated that the easing of its monetary policy is supported by the relatively strong position of its net international reserves, which currently stand at US$1.95 billion.

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