JIS News

Central Bank Governor, Derick Latibeaudiere has expressed his intention to work to establish a Monetary Policy Committee, to ensure that the objective of price stability was not compromised.
“There are only two mandates that Central Banks have, to ensure price stability and the other is to ensure financial sector stability,” the Governor explained.
Mr. Latibeaudiere, who was addressing the press at his downtown Kingston offices yesterday (February 18), said that there were important pre-conditions that must be met for the establishment of the body. One, that there must be an independent Central Bank enshrined in law, and that there is absence of fiscal dominance.
“A fiscal deficit is a very difficult thing to cope with in any environment. A pre-condition will have to be the removal of a fiscal deficit and that the central bank itself will have to operate with independence,” he added.
In terms of the composition of the committee, Mr. Latibeaudiere said while the members need not be permanent bank members, in order to contribute meaningfully, they must be on the ground, knowledgeable and available, and most of all, confidential.
The report for the formation of the committee is now with Finance and Planning Minister, Dr. Omar Davies.

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