Economic Prospects Positive – Byles

Central Bank Governor, Richard Byles, says the prospects for the Jamaican economy continue to be “generally positive”.

“Fiscal performance is strong, public debt continues to decline at a steady pace in line with the fiscal responsibility law… we have a sustainable current account of the balance of payments… and our [international] credit ratings have been upgraded,” he said.

The Governor was speaking at the quarterly media briefing at the Bank of Jamaica (BOJ) in downtown Kingston on February 20.

Among the other key positive macroeconomic indicators Mr. Byles highlighted were adequate levels of net international reserves, totalling some US$3.1 billion and non-borrowed reserves amounting to US$2.6 billion, which is above the Government’s target.

He further noted that Jamaica’s employment rate continues to improve while market interest rates remain “generally low”.

Meanwhile, Mr. Byles said the BOJ is maintaining its assessment that the economy could grow at a faster pace without resulting in inflation increasing above the Bank’s four to six per cent target.

Against this background, he said the Bank has opted to hold its policy rate on overnight placements from deposit-taking institutions at 0.50 per cent.

Mr. Byles said that the BOJ will closely monitor the impact on credit expansion, capital market transactions, overall economic activity and inflation “to determine the appropriate future path for the policy rate”.