Economist and financial blogger, John Jackson, says the Andrew Holness administration is making a select few Jamaicans who invest in stocks and real estate rich, while the majority are losing out.
He says the government is hurting savers and pensioners by pursuing lower interest rates.
Our Business and Finance Editor, Kalilah Reynolds, reports.
Mr. Jackson says the government’s low interest rate policy is a bad move.
But, Governor of the Bank of Jamaica, Brian Wynter, says low interest rates on savings are motivating people to turn to other economic activities where they can get better returns.
However, Jackson says most Jamaicans don’t know enough about the stock market, and therefore aren’t benefiting.
The economist says the government should instead reduce the taxes on banks.
He says this will result in interest rates for borrowers falling by some 3-percentage points