BOJ Holds Policy Interest Rate At 0.50 Per Cent On Overnight Placements

The Bank of Jamaica (BOJ) says it will be holding the policy interest rate on overnight placements from deposit-taking institutions unchanged at 0.50 per cent, effective Wednesday (November 20).

In a statement on Tuesday (November 19), the Central Bank said its decision, as was the case in September, is based on its assessment that monetary conditions are “generally appropriate” to support the achievement of the four to six per cent inflation target range over the ensuing eight quarters.

The inflation target was set by the Government to facilitate a faster pace of economic growth.

The BOJ said it will continue to closely monitor the impact of the significant monetary loosening on credit expansion, capital market transactions, overall economic activity and, consequently, the impact on inflation, to determine the “appropriate future path” for the policy rate.

“Other macroeconomic indicators continue to be positive. Foreign reserves are adequate, the current account of the balance of payments remains sustainable, market interest rates are low, labour market conditions continue to improve and fiscal performance is strong,” the Bank stated.

Further details on the policy rate are expected to be outlined during the BOJ’s quarterly briefing on Thursday (November 21).

The next Central Bank policy decision is slated to be announced on December 20.