BOJ Holds Policy Rate For December


The Bank of Jamaica has decided to hold its policy interest rate for the Christmas period.

In a statement last week the BOJ said the rate offered on overnight balances at the central bank will remain unchanged at 0.50 per cent per annum, effective today.

It says the decision to hold the policy rate is based on the Bank’s continued view that monetary conditions are generally appropriate to support inflation remaining within its target of 4 per cent to 6 per cent over the ensuing eight quarters.

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

The central bank says it will therefore continue to closely monitor the impact of the significant monetary loosening undertaken thus far on credit expansion, capital market transactions, overall economic activity.

It says it will consequently monitor the impact on inflation, to determine the appropriate future path for the policy rate.

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