Low Inflation Linked with Low Levels on Bank Lending

Economist Dr Damien King, says the country’s very low inflation rate is an indication that banks aren’t lending enough.

The Bank of Jamaica (BOJ) reported an inflation rate of 2.4% in December – well below their target of 4-6%.

This has triggered a consultation with the IMF, under the Standby Agreement.

However, he says the inflation rate hovering over 2% is consistent with a stable cost of living.

Meanwhile, Financial Analyst, Dennis Chung, says more productivity is needed for the nation to have more economic growth and favourable inflation in the economy.

Mr Chung says economic growth and investment are increasing.

He says there’s need for greater focus on producing foods which are in demand.

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